Leasing a Car Vs Buying

07 Dec

With the rising price of insurance premiums, fuel and car prices in general it can sometimes be difficult to know what is the cheapest way or running a car, should you lease or should you buy a car outright?

Buying…

There are benefits of each. Buying a new car means you own it outright, it’s yours to do with it as you please whether that means travelling across Europe or making some modifications to the car. And with car finance growing in popularity it’s easier and easier for people to buy a car for their business or upgrade the family saloon.

However buying a car means you’re also in charge of all the maintenance and repair costs and when you do come to sell it on further down the line the car will have depreciated in value meaning you obviously won’t make a profit. Another downside is that a new car will easily set you back at least £10,000 which is a huge amount of money for anyone to part with.

…Leasing

When you lease a car the monthly payments are normally cheaper than if you were to take out a loan to cover the cost and leases are often easier to obtain than a loan. Maintenance costs are normally pretty low with most new cars having a three year warranty which is around the same amount of time as a leasing period.

Deciding whether to lease or buy your car also depends quite heavily on your lifestyle choice. If you like the idea of buying a car, looking after it and driving it to the point where it actually becomes a classic then maybe buying a new car is more beneficial. However if you like the thought of driving round in a new car and upgrading every few years then perhaps leasing is the option for you.

Here at Applewood Vehicle Finance we have a range of financing and leasing options available so if you’re looking for a finance lease in Leicester, Cambridge or Peterborough then look no further than the friendly team here at Applewood Vehicle Finance. If you would like to find out more then please don’t hesitate to get in touch with us and find out what we can do for you.

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