Car leasing versus car buying – what makes more sense for you
Leasing or buying – which makes more sense. We have compiled a guide so you can decide which one suits your business needs.
There are many advantages to getting a business car lease over buying vehicles for your company. When you lease a car it is usually for between 3-4 years, and at the end you have it replaced with a new one. On the other hand if you buy a car you own it. Which makes more sense to you? Can’t decide? Well we have compiled a list of things to consider when choosing to buy or lease.
There are a number of positives for leasing of of the biggest of these is money. Leasing means that you don’t have to pay a large sum for a car at one time. Instead you pay a fee monthly and when the period of rental is up you just change the car with no issues or large lump sum involved.
Companies who lease cars are also covered by warranty for most if not all of their lease. This means you will not have to pay for the price of getting the car repaired and if the vehicle ends up out of action you will not have to worry as it will be replaced for the duration of the repair. This means you save as you don’t have to put your hand in your pocket when it is broken or source a new car.
Car leasing is also excellent as you can budget for it exactly without having to pay any of the above costs. These fixed costs allow people who are leasing to budget and have the exact expenditure for the month. If you do feel like purchasing the car at the end of the lease, many companies will allow you to do so for a lump sum – so leasing is also a very flexible option. You can also have a large range of car options, which can change the cost by significant amounts, for example if you look at Audi car leasing you can see the changes from small diesel hatchbacks all the way up to very expensive sports cars.
There are obviously a number of factors involved that make purchasing a car a better option than leasing – though this all depends on the individual needs of a person.
One of the most obvious problems with leasing is the fact you will never actually own the car. However, owning a car can be a burden as you have to maintain it and also sell it off when you are finished. In many leases as we have said you get the option of buying out the contract at the end and owning the car, so this is not always a negative.
If you wish to drive huge miles, owning a car might be a better option. Many contracts have a limited mileage clause included in them. This clause states that you will have to pay excess if you exceed the mileage. If you plan on diving massive distances then you should perhaps do your sums.
If you do wish to keep a car for a long period then sometimes it is cheaper to purchase it. If you wish to lease a car for 5-10 years then you should perhaps consider purchasing the car as you get some cash back when you go to sell it.
Pay attention to the terms and conditions of a contract and then you will not have any problems with these details.
It is clear from the detailed information above that buying or leasing a car is all down to personal circumstance.
