CHOOSING a new car is always exciting. There are so many options open to you that finding the perfect fit seems infinitely possible. Unfortunately, one very banal consideration has a habit of getting in the way: working out how you’re going to pay for your dream motor.

The obvious answer is with cash, but this isn’t always the best or most viable solution. Funds can often be tight, and sometimes there simply isn’t the money available to buy a new vehicle. This is where leasing usually comes in.

If you’re struggling to decide between the two, here’s some advice to help you…

What’s the Difference between Buying and Leasing?

 We all know what buying is, but leasing is a concept that many people are less familiar with. Although you probably have a rough idea of how it works, it can still help to have it explained.

Essentially, leasing is an alternative that doesn’t require you to buy a car outright, but rather allows you to pay a monthly fee in exchange for being able to use it. Although ownership of the vehicle is not transferred to you, you have all of the perks of owning a car, but at a lower cost.

So which of the two is better for you?

The Advantages of Buying

 To say whether leasing or buying is better is an impossible ask, as the truth of the matter is purely dictated by your individual circumstances and preferences. However, each of the two have their advantages, and these should help you to decide which would suit you to a greater degree.

In the case of buying, it can be a good option for several reasons, namely:

Buying outright puts you in a stronger bargaining position. Unlike leasing, where the costs are usually fixed, purchasers are often able to haggle down the price and get a good deal. What’s more, many dealers will accept an existing vehicle as part exchange, which can help to lessen your outlay.

There are no restrictions imposed upon you when you buy. Although many vehicle leasing companies will impose mileage limits, a bought car is yours to do with as you please.

Ownership vests in you. This can be a greater boon than many realise, as it means that your car is an asset; one that can be sold for money if the need arises.

The Advantages of Leasing

 This is not to say that leasing lacks advantages. It has many, and here are just a few for you to consider:

Leased vehicles do not decline in value. Although bought cars depreciate rapidly, leased vehicles can simply be handed back at the end of the term, or else replaced with a newer model as part of a fresh agreement.

Leasing helps to save money on maintenance costs. Newer vehicles are far less expensive to keep, and can be handed back or exchanged before age starts to impact their reliability.

Maintenance and breakdown cover will often be included in your leasing package, which can save you a significant amount of money in the long run. This means that if your vehicle breaks down, the cost of repairs comes out of the lease company’s pocket rather than yours.

If you’re considering a new vehicle, which of these options would be best for you?