NicolesNickels.com is constantly looking for ways to help advise our readers on saving. Today we are looking at the different options to owning a car. The main options available are between car leasing and buying the car outright.
What is Leasing?
Leasing is similar to hiring – but not the same. Leasing is set usually over 2 to 3 years but gives you the ability to drive a brand new car and you pay a monthly fee for this. It is on a contract basis. Blue Chilli Car Leasing are a great company to use.
When it comes to purchasing a car there is always the request to pay a fee before you leave the showroom. This can often be high amount and therefore if the cashflow is low then this means the worst deal you can get. When it comes to leasing a car, the providers can negotiate the initial downpayment to a lower amount.
Loss of Car Value
It is widely known that the value of your car decreases the second you drive it away from the car lot. Some cars retain a higher percentage of value but all lose a considerable amount. However this will have no impact on your deal with the lease as this is not important, you can return the car after the lease ends without loss.
Some cars retain a higher percentage of value but all lose a considerable amount.
New Car Each Time
With leasing you can choose the top of the range car each time, own it for the contract length and then return it and choose another new car. This benefit means you are constantly experiencing the pleasure of driving a new car.
Whilst new cars will often come with a warranty for three years, after this ends you will be responsible for paying for repairs and maintenance. However with leasing, this eliminates this cost as every repair is covered through the leasing company.
My personal choice would be to lease your car and then look at the option to purchase when the lease is up. As always we recommend you purchase within the set budget that we go through each year. For those interested we look at ways of choosing your Financial Advisor here.