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Home > Blog > Should I Buy Or Lease A Car?

Should I Buy Or Lease A Car?

Published: 7th December 2020
Should I Buy Or Lease A Car?

The excitement of buying a new car can be a fantastic feeling, the new car smell, test driving cars that aren’t even in your price range, the whole shebang. 

Then comes the time to pay for the vehicle and your feet reacquaint themselves firmly with the ground, how are you going to pay? Have you got the cash to outright buy the car or are you looking at leasing? 

The decision between buying or leasing a car is one that can leave you scratching your head. Luckily we’re here to help! 

The Decision Between Buying Or Leasing Your Next Car

When looking to purchase your next car, there are tonnes of different types of car finance options to choose from; PCP, car leasing, PCH, personal loans, and even the bank of mum and dad (if you’re lucky). 

If you’ve managed to narrow down your options to buying and car leasing, it’s not quite over just yet. We still need to help you figure out the answer to the question “Should I Buy or Lease a Car?”. 

To do just that, we’re going to break down buying vs leasing to help you understand the differences and decide which is the best option for you.

Buying Your Car

Usually, purchasing a car can be divided into two categories; cash and finance. Even though you may not necessarily be paying with cash, this would cover anything that involves you paying for the car with your own funds.

Whether you’re purchasing the vehicle on your debit card, on a credit card, or through a personal loan – these are all means of buying a car outright. This means that you are not only the registered keeper of the vehicle, you also own it from the word go.

As soon as you’ve paid both the deposit and the balance of the vehicle, you can drive your Hyundai i30 off the lot. That car is yours to love and cherish for as long or as little as you’d please.

Benefits Of Buying A Car

  • You own the car
  • You have the freedom to choose what car you’d like, not just what dealerships have in stock at the time of purchase
  • You can often barter better deals on your car
  • You have the flexibility to sell your car at any time
  • No mileage restrictions or mileage charges if you go over
  • You usually find personal loans with better interest rates than car finance

Drawbacks Of Buying A Car

  • Tax, maintenance and insurance (upkeep) is your responsibility such as keeping your engine in optimal condition
  • The value of your vehicle will depreciate over time, meaning when it comes time to sell it will be worth considerably less
  •  Monthly payments on a personal loan are usually higher than car leasing

Car Leasing

Car leasing would be covered under the second category, car finance. This usually means using external funds to purchase the vehicle and then making monthly payments to repay this. 

Unlike buying the car, car leasing doesn’t mean you own the vehicle. While you are the registered keeper, you do not have ownership of the vehicle. This is the case for most car financing options, bar PCP if you choose to pay the balloon payment. 

Car leasing is essentially renting out the vehicle for a specific period of time. This could be for a period of 12, 24, 36 or 48 months – each lease is different and has different conditions.

Car leasing starts by paying a deposit (equal to anywhere between one and several month’s payments). 

You’re then free to go out on the open road, roll down your windows and feel the cool breeze on your skin in your Vauxhall Astra. Just remember to keep up with payments. 

Benefits Of Car Leasing

  • Has the ability to improve a bad credit score over time by making monthly repayments
  • You can drive a car that would normally be outside of your budget
  • You don’t have to worry about depreciation
  • Tax, maintenance and servicing are usually included
  • Warranty is included
  • Normally lower monthly payments than personal loans
  • You have the option to swap your car out for a brand new one every 2-4 years
  • Simple process, you hand your keys back at the end
  • You have fixed monthly costs making it easier to plan ahead and budget accordingly
  • The car can be delivered straight to your home or work address

Drawbacks Of Car Leasing

  • You do not own the vehicle
  • You have to insure the car yourself with fully comprehensive cover
  • You are limited to the cars that are available for lease
  • You normally a good credit score to get accepted for leasing, however, there are non-status leases available
  • You are responsible for repair costs if your car is damaged outside the normal wear and tear
  • There is a mileage limit and there will be charges invoked if you go over 

Hyundai i20 1.2 SE 5 Door

Is It Better To Buy A Car Or Lease?

The decision between buying or leasing a car is very much subjective, much like our guide on PCP vs. car leasing – while we can provide all the information, the final decision is yours to make. 

Is It Cheaper To Buy Or Lease?

A lot of factors influence the cost of purchasing a car, whether through outright buying or leasing. It can be subject to many factors; is the car you’re looking for preowned or brand new? Do you have a good interest rate on your personal loan? How long are you planning to keep the car?

Generally speaking, buying a car outright is the cheaper option – overall you’re paying less in the long run for something you own. However, buying outright isn’t always an option, therefore, car leasing can provide a means of spreading out the payments. 

While buying a car usually works out cheaper than car leasing, the depreciation of the car can see you with a loss when its time to sell. 

Should I Choose To Buy Or Lease?

Deciding between buying a car outright and car leasing can be a tough decision to make. It’s up to you to weigh up the options and select the one best for you.

If you have the money to outright buy the vehicle, it may be worth paying the debt off immediately to avoid paying any interest. If owning the car is something you’re serious about then you’re probably best to buy if you have the funds. 

However, there are benefits to car leasing that outperform buying in certain events. If you’re conscious about losing money to depreciation, looking to keep your nest egg intact – car leasing may be the way to go.

The choice is ultimately up to you, your current circumstances, financial situation and preferences. 

If you’re leaning more towards car leasing but worried your credit score will get in the way, don’t be! Here at Wheels4Sure, our car leases look less at your credit score, and more at your ability to make repayments. 

kia cee'd car on the road

Affordable Car Leasing For Poor Credit History At Wheels4Sure

Wheels4Sure provides simple and affordable car leasing for bad credit. If you have a poor or non-existent credit history, we provide a car leasing model that is based on affordability, not your credit score.

We have a 95% acceptance rate, so you can wipe those worries away and start your journey to driving the car of your dreams today.

If this has left you screaming ‘sign me up!’ and you’d like to find out more. Simply fill out our enquiry form or call us on 0203 823 1010 to speak to one of our personal advisors.

If you’re wondering what cars we have available, have a gander at our selection of car leasing deals. From an extensive group of premium brands such as Vauxhall, Renault, and Fiat, we’re confident we have a set of wheels that’ll catch your eye.

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