Should You Lease Or Buy Your Next Vehicle? Find The Answer!

Posted June 17, 2021 by in Lifestyle/ Shopping

How Leasing Works: You may only need to pay a small amount upfront for the car. However, you can choose how much of your monthly payment is due upfront if you want lower monthly payments overall. You can opt for no deposit car leasing.

Fixed Payments: If you’re looking for a way to keep your monthly payments low, leasing may be the perfect option. With fixed monthly payments and no mileage restrictions, it’s easy to know exactly how much money is being spent on this car each month!

Newer Cars: You may be tempted to go with the newest model every few years, but that just means you’re spending more money. With leasing, you get a new car and don’t have to worry about depreciation because it’s all handled for you!

Fewer Hassles: One of the most frustrating things about owning a car is that it becomes more expensive to repair as time goes on. Now, with leasing cars, you don’t have this problem at all because once your lease agreement ends, responsibility for ownership costs falls back in the hands of the finance provider and not yourself any longer!

More Value For Money: With the cost of owning a car rising, leasing has become an increasingly popular financial option. When you lease a vehicle from your local dealership or bank they offer perks that are found within the monthly payment such as road tax for the duration of your contract and free delivery to your home. There is also no transfer fee when it comes time to return or trade-in this purchase – because let’s be honest, nobody likes those! 

What Are The Disadvantages Of Leasing A Car?

Restrictions On Mileage: The number of miles you can drive is limited by the agreement at the beginning. You will pay a penalty for any excess mileage over your limit, but it varies depending on how many miles you’re agreeing to drive in total and what type of car lease contract that comes with. If this isn’t something that works out well for you or if there are other limitations imposed (such as only being able to take certain types of cars), leasing probably won’t work best for your needs; do some research before signing up so make sure all bases have been covered!

Administration Fees: Although not every leasing broker will charge admin fees for a lease agreement, many do. This one-off payment costs around £200 to process the paperwork on your behalf and ensure that you are getting charged correctly.

Damage Charge: The car is yours for the duration of your agreement. Any damage to it will be charged, so make sure you don’t go too hard on it! Just keep up with its maintenance schedule and stay away from those potholes because any extra charges can really add up.

Bad Credit Is Problematic: The first step when looking for a home is passing the credit check. If you have any financial problems, this will be one of your biggest challenges because lenders are very strict these days on who they approve and it’s easier to just deny someone outright than take their risk by approving them. The initial cost of leasing may seem low at first but interest rates over time can make monthly payments much more expensive so always ask before signing anything!

What Are The Benefits Of Buying A Car?

You Fully Own It: When you buy a car, you get to make modifications and only need to fund its running costs. You own the vehicle so it’s yours for good with no risk of being taken back by your lease company!

It Is Your To Sell: Owning a car is like owning an investment. You can sell it at any point and make back some of the money you invested in that asset, just as long as your trade-in value remains high enough to cover what someone else will be paying for the same thing new.

No Mileage Restrictions: You will be able to use your vehicle as much as you want without any limitations. When leasing a car, there is often an annual mileage cap that can turn into a costly inconvenience if it’s not what you expected.

What Are The Disadvantages Of Buying A Car?

Depreciation: You might not want to buy that new car because the minute you start driving it, its value begins to decrease. You also probably won’t make nearly what you paid for your last ride in this one either as a result of depreciation. But classic cars are an exception! These models tend to hold their value better than standard vehicles so they’re worth investing in if possible.

Age Problems: Cars are a depreciating asset that often experience more problems the older they get, but many people find this to be worth it because of how much less expensive cars usually cost. When you buy a car, you’ll have to pay for any unexpected repair work that needs to be done whether that’s through your own garage or if you’ve got a manufacturer warranty.

Larger Upfront Cost: When you purchase a car, even if it is through the use of a loan, you are going to need a much larger down payment as opposed to a lease agreement. This is because you are paying toward the full payment of the vehicle, not just the depreciation value as a lease agreement. 

Road Tax Cost: Drivers in the United Kingdom are required to pay road tax each year, which varies depending on CO2 emissions. The more your car emits carbon dioxide into our atmosphere, the higher you’ll have to pay for this annual fee! There are also plenty of greener options for transport too, so you don’t need to use a car anymore. 

Car Sales Are A Hassle: It’s not always easy to part with a car. Whether you’re selling it because the mileage is too high or for some other reason, there are many steps involved in this process and they all take time and effort.

Selling your car is an emotional experience that requires just as much patience on behalf of both parties–the seller who has become attached to their vehicle over its lifetime, and the buyer trying to find one that matches their needs without making sacrifices elsewhere.

*Photo by Omotayo Tajudeen