Deciding whether to buy or lease a car can be a tough call. This article is designed to help you navigate the benefits of each option.
The Advantages of Leasing a Car
Affordability of Lease Payments
Monthly lease payments are usually lower than car ownership loan payments, since you’re just borrowing and repaying the difference between the car’s value new and its anticipated value when the lease comes to an end, plus interest and fees. Monthly deals on low cost auto leases mean drivers can frequently pick up advantageous lease deals when manufacturers slash new car prices.
Reliability of Leasing a Car
When leasing, you’re generally driving a new car during its most trouble-free years. covered by the manufacturer’s new-car warranty. This minimises the likelihood of malfunctions and the associated cost and inconvenience in the unlikely event of problems.
Access to Newer, Better Cars
Leasing offers the benefit of allowing drivers access to a higher-priced, better-equipped vehicle than they might otherwise have been able to afford, including cars with better fuel economy, safety features and lower carbon emissions.
Less Administration When Leasing
Leasing a car means you don’t need to worry about fluctuations in the car’s value or endure the hassle of selling it when the time comes. Road tax is covered and maintenance can also be included as part of your lease package for an additional fee.
Business Benefits of Leasing
In the UK, businesses can often deduct lease payments as a business expense, reducing their taxable income, with VAT registered businesses also able to reclaim up to 100% of the VAT on the monthly costs.
In addition, the electric car salary sacrifice scheme allows employees to drive away a brand new electric vehicle at an affordable rate. Employees effectively swap a portion of their salary for an electric car, before tax and National Insurance are deducted, equating to significant monthly savings. Typically, an employee saves between 30% and 40% when compared to funding a personal car lease. Meanwhile, the employer saves on Class 1 National Insurance contributions.
The Advantages of Buying a Car
You Own Your Car
Your vehicle is yours to buy, use, modify and resell as you wish, with all the financial advantages and responsibilities that come with owning your own asset
Mileage is No Obstacle
Aside from depreciating the value of your car, you can drive as many miles as you like without having to consider the cost impact whereas lease contracts specify the number of miles drivers have included within their monthly lease payment.
No Early Termination
When you own your car there is no point at which you need to sell or hand the car back. You get to keep your car as long as you want to.
Which is Best? Buying or Leasing?
In short, there is no easy answer. It depends on how you view ownership and the factors outlined above. These include whether you value the benefits of ownership over the benefits of gaining access to the latest models and features of new vehicles on a relatively frequent basis. Get in touch with our team to discover our latest lease offers.
Enjoyed this article? Read more of our latest blogs below:
Want to know more about car leasing?
For all our latest news and blogs click HERE.
Looking for the next best car leasing deal? Check out our Top Leasing Deals.
Or do you need to know more about leasing? Check out our Guide Pages.
Leave a Comment