Lease vs Buying

All in all there is no objective winner or categorically better option when it comes to the debate surrounding leasing or buying. It all depends on the person’s circumstance and their personal preference and priorities. If having a new car every few years is important to you, and you value the idea that your car will always be under warranty, if you would rather pay small monthly payments instead of a pretty big down payment followed by higher monthly payments? Also if you don’t really care about actually owning your vehicle, whether it be a Ford Fiesta or a Rolls-Royce, and are not to fussed about being tied to a contract, then leasing may well be for you. Another benefit of leasing is that it gives you the chance to drive a car which you might not ever be able to afford if you went down the route of actually buying. On the other hand you might be the type of person who would rather just save money and get the payment out of the way as quickly as possible and in turn own the vehicle as quickly as possible even if it means higher monthly payments for a couple of years, for in the long run you will end up saving money. Sometimes however you may not have the time to save and might need a vehicle there and then, making leasing your only option regardless of your personal preference. Another advantage of actually purchasing your vehicle is that you ultimately still have your money; if you spent £20,000 pounds on your car, you will still have a lot of that money tied up in that car even after depreciation, therefore if you choose to sell your car you get a lot of that money back which can then be used as the down payment and possibly a few monthly payments on your new car or vehicle. Leasing on the other hand has no investment benefits, once you have spent the money on your leased vehicle you will not see it again yet it did benefit you in the fact that you kept cash in your pocket and never felt the burden of having to save. Obviously then there are pros and cons to both, all of which should be seriously considered.

The only area where the argument seems to be won is where businesses are concerned. It seems a much favourable option for businesses to lease or contract hire their company cars or corporate vehicles rather than buying them in most cases.