When deciding to get a new car, buy your first car or upgrade your car one thing you need to consider is
if you want to buy a car on finance or lease your car. In this blog post we look at car leasing compared to
car buying. We look at this in regards to ownership, monthly payments, mileage along with maintenance
If you lease a car it is rented and not yours. This means that at the end of the agreed lease term the car
is returned to the car leasing company. However, when you purchase a vehicle it is yours and you own
Car leasing means that you pay a monthly fee for the vehicle. This will be a set amount at the beginning
and then a lower set amount throughout the length of time the vehicle is leased. You are renting the
car, more than purchasing it on finance. When you are buying a car on finance it means that you will be
paying a higher monthly amount than you would when leasing a car. This is because you are paying for
the car to be yours, as opposed to hiring it.
At the beginning of your car lease deal you will choose a set mileage that you will not exceed. In some
cases you will be charged if you go over this limit. We would recommend that you increase the mileage
limit to ensure you don’t go over it. If you have purchased your car on finance there may be no mileage
limits. However, some mileage limits will apply if you have purchased the car on HP or PCP.
Maintenance and Warranty
All new leased vehicles are under a manufacturer’s warranty so mechanical issues within the car will
often be covered. There are also optional maintenance packages that can be arranged at the start of
your contract. These can cover your car servicing requirements. If you buy a car on finance you are
responsible for the maintenance and subsequent costs. Your warranty will expire if you have the vehicle
for a long length of time.
Wear and Tear
Any significant damage to your leased vehicle will be chargeable when you return your vehicle.
However, in many car leasing cases the first £150 will be covered. When you purchase a car on finance
all wear and tear is down to you and all costs will need to be covered by yourself. You may be able to
claim on your insurance in the case of an accident.
If you think car leasing could be the best option for you, instead of hiring a car on purchase, then contact
us now. We would be happy to show you around the cars we currently have available on lease.