Choosing your next car is an exciting moment, and one of the more cathartic forms of retail therapy with which you can engage as an adult. But buying a car is a nonetheless stressful and even risky process, particularly at a time when money is tight.
Luckily, there are newer and newer ways of engaging with the UK automotive market, with different forms of ownership and lease available for prospective drivers. But what are the merits of buying and leasing respectively, and which should you consider choosing?
The Advantages of Buying
The merits of buying your next car are, to some extent, self-evident. Buying a car means owning it outright, whether with immediate purchase or at the end of a finance agreement. This allows you to eventually sell it, which in some circumstances can return you nearly as much as you spent. There is also the relatively low cost of the second-hand market in general to consider, where older cars can be bought for much less than the latest model.
Not only are sales cheap, but they can also be swift; if you find an approved used Peugeot 2008 for sale near you, you can go to the dealership and arrange purchase immediately. In certain dealerships’ cases, there may even be finance options to lower the upfront cost and make the purchase more affordable in general.
The Advantages of Leasing
While buying has its own merits, there are also some key advantages to leasing a car instead. A lease does not end in ownership, but can be cheaper overall; a static monthly fee might come in at a much lower price than a finance agreement for a new car, with the benefits of maintenance potentially being wrapped up in the lease contract itself.
Lease agreements also typically enable customers to ‘upgrade’ their vehicle after a couple of years, which allows you to experience newer models of car without having to go through the rigamarole of buying and selling – and losing significant amounts of money to depreciation in the process.
Financial Considerations
The financial part of the equation is pretty central to your decision-making here. Private transport is a costly endeavour whichever way you approach it, and the costs may work out for you in different ways depending on your situation. As someone with less in the way of savings, a lease agreement is a great way to retain medium-term access to a car without having lump sums to put up for ownership. Ownership, though, could be cheaper in the long term, depending on how long you keep the car running for.
In Conclusion
Ultimately, the decision of whether to buy or lease your next car can only be yours to make. Between the specifics of your financial situation, your personal preferences for vehicles and your own logistical needs, there are too many variables to bear in mind. But the above points should be enough food for though to give you conviction in your final decision.
