subject: Car Leasing vs Buying - Should I Lease or Buy my Next Car? [print this page] Car Leasing vs Buying which is best for me?
The question of lease vs buy arises for many people when they are thinking about getting a new car or van. This needs careful consideration whether you are looking for a company vehicle, opting out of your company car scheme, or looking for a private vehicle.
If you have purchased your vehicles in the past, you will probably be aware of how much they depreciate over time. In fact, most cars will have lost at least half their value by the time they are three years old. This is one of the most powerful arguments against buying vehicles.
If you lease a car, you do not need to worry about depreciation as, with most lease contracts, you do not own the vehicle and can simply hand it back at the end of the term. There are, of course, other End of Contract Options available to you such as purchasing the vehicle or extending the contract, depending on the type of lease you choose.
The main benefits of leasing a car are easy budgeting of your motoring costs, low initial outlay and monthly payments compared to purchasing a vehicle, easily change your car every two or three years, and no further commitment when the lease ends. In addition, businesses benefit from improved cashflow, tax advantages and VAT relief.
Buy vs Lease - considerations that will help you decide
To help you answer the lease versus buy dilemma, leasing a vehicle would probably suit you if:-
You want to know exactly how much your motoring will cost you every month
You don't want any surprise bills for repairs, routine maintenance or MOTs
You like to drive a new car every 2 or 3 years
You don't want to worry about how fast your car is depreciating
You only want a low initial outlay to acquire your new vehicle
You have a good idea of how many miles you drive each year
You tend to look after the car you drive, as lease cars are subject to a Fair Wear & Tear policy
You don't enjoy the ordeal of part-exchange or disposing of your old vehicle
You like the idea of having end of contract options you can simply hand the car back with no further commitment, extend the lease, or maybe even purchase the vehicle if you wish
In general, though, when considering lease vs buy, you will find that Leasing has many advantages unless your annual mileage is very low, or you have a particular desire to own your vehicle and keep it for a long time.
To find out more about Car Leasing, why not visit Car Leasing Guide where you will find lots of useful tips and information on leasing a car. You can also get a free copy of Car Leasing Secrets - How To Get The Best Deal Possible On Your Next Car Lease' if you subscribe to our Blog.
Car Leasing vs Buying - Should I Lease or Buy my Next Car?
By: Howard Mostyn
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