For anyone considering a new car purchase this will be a question they’ve asked themselves. The not so simple answer is yes…depending on the car in question and your own personal circumstances.
First you need to understand what leasing is.
Car Leasing Explained
You can look at car leasing as a long-term rental. You pay a fixed monthly fee over a certain period of time – usually 2-3 years – and at the end of the rental or lease period you simply give the car back.
There is usually an up front, non-refundable deposit to be paid amounting to a certain number of months payment and you can add things like maintenance to the deal if you wish.
There are several advantages to leasing over buying, including:
- Avoid depreciation – this is the biggest cost associated with buying a car but you won’t suffer from this with car leasing
- Manageable costs – with a fixed monthly fee you know well in advance what you’ll be paying for your car. They are usually lower than finance repayments too!
- Lower entry level costs – the non-refundable deposit you pay at the start of a leasing term is much lower than buying a car, so you could get a high end car for a very affordable cost when spread over 2-3 years
Car leasing may not be for everybody and it’s important you do your research before committing to one way of obtaining your car or another.
As an example, car leasing is ideal for cars that lose a big chunk of their value very quickly, but may not be as suitable for vehicles that hold their value well.
What’s best for you?
At the end of the day what usually determines which car you buy and how is your own personal circumstances and what you can afford. If you’re hankering after that nice Mercedes C Class but your monthly outgoings prohibit finance deals then leasing is a good option for you.
As long as you can afford the deposit – much lower than paying in cash for a car – then you’ll find the monthly leasing cost a lot lower than any finance deal.
And you’ll know exactly what you’ll have to pay each month, making it extremely manageable and giving you the security to go ahead on a car you know you can afford.
Another advantage of leasing (with Blue Chilli Cars) is that road tax, warranty and breakdown cover is included, removing even more additional costs that come with finance.
Finally, if you’re able to lease your car through a business then you’ll be able to claim back the VAT too.
The choice is yours
At the end of the day you’re going to make the best decision for you. What we here at Blue Chilli Cars want you to do is consider all the options available to you – buying in cash, using car finance and leasing a car – and choose the best one that suits the car you want and the circumstances you’re in.
We’re confident you’ll find a car leasing deal very attractive in most cases.