A new car is very exciting. But whether to lease or purchase outright needs to be considered very carefully, as there are advantages and disadvantages to both options.
Data from Statista shows that there has been a two percent year-on-year decrease in the number of new cars in 2022 in the UK. In this article, we take a look at the pros and cons of leasing a car vs purchasing a car outright.
Pros of leasing a car
Driving a new car is affordable, thanks to lower monthly payments, especially if drivers cannot afford the upfront costs of new car ownership.
Lease cars are usually covered by the manufacturer’s warranty for the duration of the lease, which means lower maintenance costs.
Drivers of lease cars have the advantage of being able to drive a brand-new car every few years. This means there is no hassle of having to sell or trade-in an older car.
Leasing provides tax benefits for businesses, as lease payments are often deductible.
If you are interested in car leasing Bristol, it is wise to compare multiple leasing companies, as their terms and conditions may vary. More information can be found here: https://www.autolyne.co.uk/car-leasing-near-me/bristol.
Cons of leasing a car
One main disadvantage of leasing is that the car is not yours at the end of the leasing period. Mileage restrictions imposed by leasing companies can also cause problems especially if you expect to travel extensively, as exceeding the allotted miles can be costly.
Pros of buying a car
When you purchase a vehicle, you own it outright, unlike leasing.
Mileage is unrestricted, and as the owner you are also free to make any modifications you wish to the car.
You are free to trade in or sell the vehicle, whenever you desire, for its current market value based on the mileage and its condition.
Cons of buying a car
The biggest drawback of buying a car is the high upfront cost. There are also maintenance and repair costs to consider. A car’s resale value also decreases over time.