Should I lease or buy a new car?

Should I lease or buy a new car?

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Lease or Buy a Car?
Lease or Buy a Car?

It’s becoming one of the ever reoccurring questions in the car industry – do I buy or do I lease?  The truth is, up until a few years ago, not many consumers knew of the benefits of leasing.  But its meteoric rise has seen increasingly more people consider it as a viable option.  So, what’s the cause of this rise?

Well, the answer is simple. Leasing makes desirable cars more affordable.  It works on the premise of what the residual value of that vehicle will be after the terms of a consumer’s lease have been fulfilled.  Whilst car leasing means that you will never own the vehicle, it also means because you are not a stake holder in the car, so you aren’t subjected to APR.  The combination of those factors mean that if you can identify a car where the depreciation is minimal over the course of your selected terms, the savings can be substantial.

What makes this ideal is that these types of cars tend to be those that are highly desirable.  German made cars, such as Audi’s, BMW’s and Mercedes tend to depreciate less than their competitors.  Equally, there expansive list of options mean that whilst you add money to the on the road and ultimately the monthly rental, there will be some options that improve the residual value of the car, making the monthly payment still affordable.  If you do the research, you can actually end up paying just a fraction more for a car that has all the bells and whistles and is worth far, far more.

There is comfort in leasing too.  While leasing comes with road tax included in the monthly fee, there is also the option of maintenance.  Many of these providers offer packages that are often great value for money and take away the worry of punctures, exhaust replacements and servicing.  More often than not, you’ll be surprised at how little the cover is.

Leasing does have its draw backs though.  Many car enthusiasts believe that there are better deals to be had in the used car market.  In some cases this can be true, particularly if you are intending to keep the car over an extended period of time.  But, with consumers changing their shopping habits and researching their potential purchases thoroughly through the web, it’s not only buyers that are becoming more informed.  Similarly, private sellers are able to research the market worth of the vehicle.  Gone are the days where you could barter down the careful lady driver at the end of the street for her pristine run around.  Good deals are harder to come by, so maybe leasing is a true sign of the times.