Should You Lease Or Buy Your Next Car?

If you’re in the market for a new car, there are lots of ways to pay for it. A lot of your decision should be based on whether or not you have the spare cash available to buy a car outright. If and when you plan to trade in your current car or not is also something to consider. Car leasing can offer the chance to drive a new car without paying for it outright. But should you lease or buy?

Benefits Of Leasing

There are several benefits of leasing from somewhere like Phil Wright rather than buying. 

  • Low upfront payment. A lot of leasing companies let you pay as little as one month’s worth of the monthly rental cost upfront for the car. You can pay more if you want lower monthly payments. 
  • Fixed monthly payments. It’s easier to predict how much you’ll spend on your car when you decide to lease as the payments are fixed. As long as you stick to the agreed annual mileage and keep the car in good condition, you won’t be charged at the end of the lease period. 
  • A new car every few years. If you want the latest model of a popular brand every few years, it’s going to cost you. When you lease, you can get the keys of a new car on the same day as you give back the old one. 
  • No ownership hassles. One of the disadvantages of owning a car is how much the value depreciates over time, and how expensive repairs can be. When you lease, the finance provider owns the car and has to take responsibility for the costs of ownership once your agreement is over. 
  • Value for money. Car leasing has a lot of perks, such as included road tax for the length of your contract, free delivery to your home, or a manufacturer’s warranty. 

Disadvantages Of Leasing

There are some disadvantages to leasing too. 

  • Mileage restrictions. When you start a lease, you will need to specify how many miles you plan to drive in a year. Your total mileage is calculated at the end of the lease period, and you will be charged for any additional miles you do that is over your original limit. 
  • Admin fees. Not every leasing broker will charge you admin fees for your leasing agreement, but a lot of them do. This one-off payment usually covers the cost of the broker processing the paperwork to get a deal on your behalf. 
  • Damage charges. You will have to keep the car in good condition throughout the agreement. If the car does get damaged beyond general ‘wear and tear’, then you will be charged. However, you don’t need to worry too much about being charged unfairly. As long as you stick to the service schedule set by the manufacturer, and the condition of the car reflects fair use for the time that you’ve had it, you won’t be charged. 

Think about the advantages and disadvantages carefully before deciding to lease a car.