Leasing vs Buying

The question we probably get asked most often by first-time-leasers is:

Is leasing cheaper than buying?

It’s a fair question, when you’re looking to save money it’s certainly important to ensure you’re getting the best deal available, so here’s where we hope to answer your questions:

Benefits of business car leasing

Handling business fleets can be an expensive exercise. If you buy, you have to factor in maintenance, repair costs and, when you decide it’s time for something new, the time and effort of selling your current company vehicle(s).

When you lease a car on the other hand, you’ve got one monthly payment to keep track of, you can claim back 50% of your VAT costs and if you choose to take out a maintenance package, you won’t need to worry about breakdowns, servicing or tyre replacements for the duration of your contract. What’s more, you’ll have a brand new car company car every two, three or four years depending on the contract you choose, and assuming you wish to continue leasing.

What’s also brilliant about leasing is that you’re essentially only ever paying for the depreciation of the car which means that monthly lease payments are generally much cheaper than monthly finance payments.

Leasing makes getting rid of a car easy too because at the end of your contract all you have to do is hand it back – simple as that. If you opt to buy a car, there are no limits on mileage or the length of time you own it for but it’s down to you to sell it at the end and sometimes that kind of effort really isn’t worth it.

If you’d like to take a look at our business leasing deals click here or if you’d like to know more about the leasing process and how we can help you, feel free to give our friendly team a call today on 01565 880 880.

Benefits for personal car leasing

To be perfectly honest, when it comes to the choice between leasing and buying, many of the benefits listed above are relevant here also. Of course you won’t be able to claim back any VAT payments if you decide to take out a personal lease but you’ll still benefit from other benefits including:

  • Maintenance package – If you choose to take out a maintenance package alongside your lease then you won’t have to worry about servicing, breakdown assistance or tyre replacement for the duration of your contract
  • Road tax – If you lease a car through us then your road fund licence is paid for the duration of your policy
  • Lower monthly payments – Unless you’ve got a spare few £1,000 sitting in your back pocket, buying a car will almost certainly mean taking out a finance plan. As the monthly payment on a lease contract covers only the depreciation value of the vehicle, the payment will be significantly less than on a finance plan were you’re spreading the cost of the entire car as well as adding interest
  • New car more often – Our leases are available as two, three or four year contracts and once yours comes to an end, you hand the car back and start again, which means you could have a brand new car sitting on your drive every two years! Not only does it means a new car though, it also means the latest fuel efficient engines and high-tech gadgets too!

For more information on any of our leases, feel free to place an online enquiry or call the team today (01565 880 880). Alternatively, for more information on the leasing vs. buying debate, check out this infographic.