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Is it better to buy or lease a car?

Updated March 29, 2014

Buying a new car, for many people, takes a lot of consideration; first of all you have the find the money to fund it. Whether you are buying a vehicle outright or are planning to finance it you’ll need money, and often, dealership finance deals require a minimum deposit of a high amount for the lowest possible monthly repayments. Couple that with sky-high insurance prices and the result is one expensive way to simply get around.

lease-or-buy

This is why car leasing is becoming increasingly popular. Rather than paying over the odds for a vehicle that you’ll only sell after a certain amount of years for much less, you’ll pay a low initial deposit and monthly payments that don’t reflect the full purchasing price of the lease vehicle in question. This saves money and also reduces financial stress, with the option for customers to also change their vehicle after a lease term.

Leasing is a lot link renting a house; you don’t own the house you are staying in, but you are paying for the ability to use it.

Here’s a rundown of the main benefits and downsides to leasing a car.

Lease benefits

– Choice. You may be able to afford to lease a much nicer car than you’d ever be able to finance or buy outright.

– Switch. After your lease term is up you’ll be able to simply switch to a newer model.

– Tax. You will pay less tax on your vehicle because you won’t be taxed for the whole vehicle purchasing price.

Lease downsides

– All deals are not created equal. Companies can set prices to what they like and so research is recommended before leasing.

– Mileage limit. Depending on the company you lease from this could be quite low.

– You will not own the car. This means that modifications will not be allowed; after all, the car is the leasing companies asset.

So is it better to buy or lease a car?

Overall, the benefits of a lease outweigh the cons. The biggest downside to leasing a car is that you won’t own it. However, this is part of the fun, and the ability to be able to simply switch to another car after a few years is what makes leasing appeal to so many people. There are some great new car lease deals available from Lease Cars at the moment, which allow motorists to take advantage of a new car rather than pay over the odds for an older car that’s more prone to faults.

Whether you choose to buy or lease, be sure to read the terms and conditions of any agreement you are thinking of signing.

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Chris Riley
About Chris Riley

I have been wrecking cars for as long as I've been driving them but I keep coming back for more. Two wheels or four, I'm all in. GearHeads.org gives me a chance to give something back to the automobile community.

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