Should I Lease or Buy My Next Car?

October 31st, 2020

Should I Lease or Buy My Next Car?

If you’re ready for your next car, you may find yourself wondering whether you should lease or buy it. Perhaps you don’t even know the difference between the two! When it comes to leasing or buying a car, there are pros and cons of both. Before you make a decision, it’s important you’re clued up on the advantages of each option.

To make things easier for you, we’ve put together a few things to consider.

Should I lease?

When you lease a car, you don’t actually own the car. However, leasing a car can be far easier to manage financially; you don’t have to pay a deposit up front and you have a fixed monthly cost each month for the length of the contract.

Leasing is essentially long-term car rental. Rather than purchasing the car, you simply give it back at the end of the term and move on to lease your next car. Typically, you’ll pay a larger sum as the first payment and then lower fixed monthly payments for the rest of the term.

Lots of leasing arrangements include other costs, such as servicing, tyres and tax. As there’s no buyout option at the end, changing your car is much easier – and you don’t have to worry about the cost of the car’s depreciation either!

Should I buy?

Buying a car is suitable for people who have a lump sum of cash waiting to be spent on a car. When you purchase a car upfront, you have full ownership of the vehicle and it’s yours to do whatever you like with – there is no returning.

You have the freedom to sell your car at any point and you have no mileage restrictions or excess mileage charges to pay. However, when you buy a car upfront, it depreciates in value the second you leave the car dealership, meaning you’re already losing money.

Think about the following before making a decision:

• Have you got enough cash to buy a car outright?
• Are you confident you could afford monthly payments for the duration of the term?
• How many miles will you drive each year?
• Would you like to own the car?
• Do you want to regularly upgrade your car?

At Global Vans, we can offer you an excellent price on a new car with flexible financing options. Visit our website to learn more today!