In 2016, there were 31.7 million cars on the road and, by the end of September 2018, there were 38.4 million – a huge increase within the space of 2 years.
So, with so many more drivers on the road and new cars increasing in price, is it better to buy or lease a car?
Why do people lease cars?
The main stumbling block for many motorists when buying a car is, of course, the initial cost.
Buying a vehicle is solely your financial responsibility, therefore, you have to pay all of the costs associated with it, including wear and tear, road tax and maintenance.
When you lease a car, however, we take care of some of these costs for you.
What are the benefits of leasing a car?
There are many reasons why leasing a van or car can be more appealing than buying.
For instance, when leasing a car for business, you can benefit from many tax perks, as well as avoid depreciation costs. According to depreciation rates, the value of a new car can drop by over 20% after the first 12 months of ownership.
Through short-term leasing, you can get behind the wheel of the top models of your favourite car manufacturers for a set monthly price, without worrying about large sums or depreciation costs.
On top of this, you don’t have to pay for wear and tear or MOTs, simply take them back to the place you leased from and they will take care of it for you!
For more leasing benefits, check out our guide!
What are the benefits of buying a car?
Buying a car means you have to pay a large lump sum if you would like a new vehicle. This is great if you would like to own a vehicle with no contract necessary.
If you are a business supplying a car, this may not be the best option. You may want to use a car as and when you need it, and only for a short time, so buying a car outright is a big commitment for a short period of time.
Additionally, as we mentioned earlier, when you buy a car, its value drops as time goes on. Higher age and mileage will bring the price of the car down, which means you won’t get as much money when you sell as you would when you bought it.
With a bought car, however, you can upgrade and modify the vehicle as you would like. If you want to improve speed and performance, you are free to do so.
Is Leasing Better Than Buying?
Buying a car means that you have to spend a lump sum of money and you won’t be able to get the value back. You also have to pay for all of the repairs and MOT tests.
Leasing a car can be much more flexible and it gives you more freedom to choose what you really want. With car leasing, the value of the car will be considered with the amount you pay.
It is important to remember that the money spent overall with a short term lease is much less than the lump sum and maintenance of buying.
With a car that you own, the wear and tear on the body of the car can bring down its overall value. With a rental car, as long as it’s not excessive, you shouldn’t be charged.
Are you a business that needs a car for travelling to meetings? Leasing is the choice for you. If you are not travelling frequently, or if the person using the car changes often, a short term lease offers the flexibility you need.
Those of you who have your heart set on a particular model but want to try before you buy should certainly consider a short-term lease. This way, you can get a real feel for your desired model over several months before committing to an outright purchase.
Interested in leasing a car?
Leasing a car is simple and extremely cost effective. if you’re considering leasing a car for both personal and commercial use, get in touch with our friendly and professional team today!