Buy vs. leasing a car

If you are undecided on whether to buy or lease your next new car, then we have some interesting information to help decide which is right for you and why you could benefit from joining the leasing revolution.

Should you buy or lease a car?

We understand that considering a new car is a big commitment. We’re here to let you know both the advantages and disadvantages of leasing and buying your next car. We’ll look at the costs involved, opportunities to upgrade, your obligations and more.

Benefits of leasing

Here are some of the key benefits of car leasing:

  • Leasing is a cost-effective way to drive a brand new car
  • You can drive a new car every two to four years
  • The initial payment is often lower in comparison to buying
  • Road tax is included for the duration of your contract
  • Your monthly costs are fixed
  • There’s a fixed monthly maintenance cost with tyre replacement
  • There are no depreciation risks to you
  • No selling or part exchange concerns
  • You conserve your savings
  • You get a standard manufacturer’s warranty and guarantee included with all new cars and breakdown cover on most models

Things to consider before leasing

There are some potential downsides that come with leasing though:

  • You will not own the vehicle
  • Defaulting on payments will affect your credit rating
  • You will need to take care of your vehicle to avoid any damage charges
  • You will need a satisfactory credit rating
  • You need to keep within your annual mileage to avoid additional costs

Benefits of buying

Here are the benefits of buying a car:

  • You will own the vehicle
  • You can part-exchange at anytime
  • There are no mileage limits
  • You can modify the car
  • You can sell at anytime

Downside to buying

But there are also downsides to buying a vehicle:

  • Your vehicle is a depreciating asset losing up to 60% in the first three years. You will be liable to cover the cost of the decrease in the vehicle’s value
  • You will need to pay road tax every year
  • You will need to take into consideration warranty and manufacturer guarantee
  • You will need to pay a lump sum upfront
  • Selling your car once you have finished with it can be a hassle

Is it cheaper to buy or lease a new car?

In most cases, leasing a vehicle would be cheaper overall than buying outright. This is due to the low monthly payments and small initial payments when leasing. Also, road tax, breakdown and maintenance can be included within your contract.

How to decide if I should lease or buy a car?

If you are looking to get a new car every two to four years without the worries of ever having to sell or part exchange the car, then leasing is the best option for you. It also takes away the depreciation risk compared to buying.

Leasing allows tailoring a new vehicle that suits your budget requirement on fixed monthly payments.

Don’t forget, you can add maintenance packages to your leasing contract to give you motoring peace of mind.

Put this all together with our access to fantastic discount terms and special offers we’re sure you’ll prefer to lease your next new car.

If you’re interested in leasing a car, head over to our leasing guide or find out more on the leasing process.

Who shouldn’t get a personal car lease?

But car leases might not be right for everyone.

If any of the below apply to you, leasing might not be the best option:

  • If owning a vehicle is more important to you despite all the advantages and cost-effectiveness a lease gives you
  • If you like to keep your vehicles for five years or more
  • If you intend to use the vehicle for any form of rental or hire purposes
  • If you like to modify your vehicles
  • If you are a very high mileage driver averaging more than 60,000 miles per year