When it comes to obtaining a brand new car, you have two major options; Buying and leasing. A few years ago, leasing was practically unheard of in the UK, but has become increasingly popular in recent years and is now considered one of the best ways of securing a new car. If you’re on the lookout for a car and want to think through your options, then take a look at the pros and cons below.
Buying A Car
Pro – It’s Your Car
When you buy a car, it is your car straight away. This means that, if you want to make any modifications to the car or customise it in any way, then you are allowed to do that. You can also drive your car as much as you like, as you don’t have to any mileage limits.
Pro – Payments Will End
Another great advantage of owning your car is that you won’t have to keep paying for it. Of course, you’ll still have to pay tax and insurance, but once you’ve paid off the loan for the car, the payments will end, and the car is yours completely.
Con – More Expensive
Unfortunately, while the payments may end eventually, while you have them, they are likely to be fairly high. The down payment will also be pretty pricey, which is why lots of people can’t afford to buy brand new cars. As your car gets older, you will also have to pay more for maintenance and repairs.
Con – Depreciates In Value
As it explains at whatcar.com, your car is going to massively depreciate the longer you own it. Of course, some cars depreciate less than others, and you can reduce the effects depreciation, but you are never going to sell your car for the price you bought it.
Leasing A Car
Pro – Lower Costs
When you lease a car from a company like IntelligentCarLeasing.com, you are pretty much guaranteed to spend less each month than you would do buying a car. You also rarely have to provide a down payment and don’t have to worry about depreciation, as car owners do.
Pro – Covered By Warranty
Another great thing about leasing is that you are usually covered by some sort of warranty for the entire duration of the lease, so you don’t have to pay out large amounts of money on repairs if your car has a mechanical problem.
Con – You Don’t Own It
The biggest downside of leasing a car is that it’s never really your car. Because of this, you have to stick to mileage limits and aren’t allowed to customise or modify your car in any way. You also have to give it back when the lease runs out, which you may not want to do.
Con – Payments Continue
Because the car isn’t yours, you are going to have to pay for it each month for as long as you have it. You will also have to pay fees for going over your mileage limit and for any damage that the car incurs, so leasing isn’t always as cheap as it appears to be.
When it comes to buying or leasing, there is no “better” option; It comes down to preference and circumstance. If you want to save money, but still want a new car, then leasing is probably better, but if you want to own your car and keep it for longer, then buying is the way to go.