Your next car: buy it or lease it?

Changing cars is an exciting prospect. Technology is moving so fast that there are always new gadgets being added to cars, such as satnavs and self-parking, and hybrid cars that run on fuel and electricity. The choice can be daunting when you want to buy a new car, but now there is another dilemma to add to the mix – is buying a car the best route to go down?

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Should you lease or should you buy?

Personal leasing is become more popular. It is firmly established in the United States, where one in four vehicles in private use is a lease car. The biggest financial advantage is that you do not need to find a lot of money upfront to drive away in a new car; instead, you pay a monthly fee to hire the car of your choice. Even if you cannot afford to buy an upmarket make, such as a Mercedes-Benz or Alfa Romeo, you may find you can afford to rent it. Leasing costs less up front, which means you can drive a car that is out of your price range to buy. This is perfect if you need a vehicle to impress clients.

Leasing costs less up front, so you can afford a more expensive car. Also, you can upgrade to the newest model every two or three years, depending on your contract. If you use your car for business, the payments could be tax deductible.

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Weighing up the financial benefits

Sticking to financial reasons for leasing, you will have lost about 20 per cent of the value of your car the minute you drive it away from the showroom. That said, you will recoup some money when you decide to trade it in. Also, you can drive it as much as you like; with a lease car, there can be penalties for high mileage. If you are considering car leasing in Leicester, it pays to look at your financial situation, the size and type of car you need, and the mileage you are likely to cover each year. You can then contact a company specialising in car leasing in Leicester to talk over your requirements.

Leasing can be more affordable than buying outright and can enable you to drive a better model or make than you thought possible.