In yet another post in our leasing myths debunked series we are going to explore the myth that new cars, whether it's PCP, HP or leasing, is a mugs' game and only buying used makes sense. We are a leasing company so in this article, we are going to run through the pros and cons of leasing vs buying second hand. Let's begin!
To begin, let's take moment to think about your current situation and car
Is your used car letting you down? (need one that's reliable)
Do you just fancy a change of car?
Do not currently own a car (need one fast)
Need something cheap
Regardless of which of the above it is, both leasing and buying a used car could resolve your situation but which is the best, cost-effective and hassle-free option? Well, we think leasing. Here's why:
Many of our customers who come to us as their first leasing experience cite their current cars unreliability and constantly repair bills as the number one reason they want to lease. This makes sense, as a leased car with us will always be brand new and unlikely to have any problems, within warranty and with a maintenance package even consumables such as tires are included.
A used car will potentially be with an unknown history, probably outside of warranty if older than years and a potential minefield of unreliability and potential repair bills. If something does go wrong outside of warranty then you know who will have to foot the bill, you!
This is not to say you can't get a used car In great nick that's very reliable but there is always a risk with used cars and that risk is massively reduced with a brand new car.
Car is within warranty
Car is brand new and unlikely to have problems
You know the full history of the car
Maintenance package takes even more of the stress away
New cars may be recalled from time to time (at no cost)
Used cars less than 3 years old may still be in warranty (unless voided)
Approved used may have a better history than local/national used dealers
You could end up buying a car with a lot of problems
A car without warranty is a liability
Your dealer may wash their hands of the problem
You just fancy a change
If you are the type of person that gets bored with cars easily then leasing is definitely the option for you. With leasing, you can get a new car literally every 2 years and never have to worry about selling the car and losing money through depreciation ever again. When dealing with the used car market then your â€˜newâ€™ car will never truly be new and you will always have to deal with the buying and selling every time, often at a loss to yourself.
The car will always be brand new and up to date
Lease for as little as 2 years
2 years may be too long for some
Need to reapply for finance every time
Can swap in and out without restriction
The car could depreciate and you could make a loss every time
You'll never drive a new car
Buying a used car is one of the quickest ways to get a new car. Just pop down to a local dealer, sign on the dotted line and drive it away. Leasing, however, is no slouch either and if you opt for a stock deal as most people so you can get your brand new car delivered in 2 weeks if you do not delay at any stage. If you waiver your right to a cooling off period you could get even earlier but we would never recommend that in most situations.
These pros and cons can also be used to help you if you need a new car fast because of a change in circumstances such as a new job, pregnancy etc.
Leasing a stock car can be as quick as 2 weeks
If you want a brand new car that's customised to your exact liking then you may need to wait a few more weeks
Used cars can be driven away the same day
You only have a choice of what exists
Expect to travel for rarer cars or cars to your requirements
When you lease a car, there is no interest and you are not paying to own the car â€“ this equates to a dramatically reduced rental. When buying used you are paying the value of the car, plus interest if itâ€™s not a cash purchase. You may also have a balloon payment at the end.
Buying a new car can be confusing and not always straight forward regardless of your circumstances but we hope that our little guide has helped debunk the myth that buying used cars is the best way forward every time, especially when compared to leasing.
To summarise why leasing can be better than buying used:
A leased car is brand new, unlikely to have problems and is under warranty for most if not the whole duration of the contract
Can lease from 2 to 4 years to suit those who get bored easily and those who don't like change
No need to worry about depreciation costs, interest rates and balloon payments