Discussion on Car Leasing vs. Car Buying

One of the largest, if not the largest expense that most people or businesses have is their car. Unfortunately, motoring is not cheap and adds to this the fact that there is a raft of extras after you buy the machine and you get the full picture.

Buying a car does not only mean an outlay of cost initially, but also makes for additional extras such as depreciation, insurance, taxation, repairs and maintenance among others. Many businesses and people have turned towards car leasing as they see it as a pivotal way of lowering cost and also the responsibility they have as regards vehicles.

Responsibility:
As you sign up to a car leasing contract hire you will end up with a new car but without many of the responsibilities that can make purchasing a car such a costly venture. One of the most notable problems with purchasing a car is the declining cost of the asset. It’s not uncommon for a car to lose around half its value in the space of three years, making it a significant cost.

 

Of course, you may then end up having to sell the car at the end of the period and depending on the circumstance you may even have to pay a lump sum to purchase it outright. Add to this the interest on the repayments and all the other hassles and you get the idea. Car leasing doesn’t include either depreciation or interest and you simply hand the car back at the end of the contract hire and if you like receive a new one.

Buying:
As you are not paying to buy the car outright the payments per month are often lower than they would be if you were buying a car. This often means companies or individuals opt for a vehicle that is a class above the usual they have. Add to this the extra cover and the lack of hassle involved if something goes wrong and it’s easy to see you are onto a winner.

Car leasing companies have the responsibility of keeping your car in good condition and instead of having to pay for repairs or issues; you simply call them to deal with it. It’s a hassle free approach that many businesses love and understandably so.

End of Lease:
Of course, the end of the lease is equally as endearing and all you have to do is send back your car and decide whether you want to take out a new car lease or change approach. There’s no lump sum as there is with many purchases from garages and no need to worry about selling the car.