There are plenty of decisions to be made when it is time for you to replace your old car. There’s the make and model, the colour and the additional features to choose. These days, you also have a choice about how you finance your new vehicle.
The top tip is to thoroughly research the options available to you and then weigh up the advantages of buying and leasing. Here are a few things that you could consider.
Pros and cons of leasing
According to Toby Poston of the BVRLA, which is the trade body for rental and leasing firms, leasing is now the most popular way of purchasing a new car in the UK. This situation was triggered by the banking crisis which forced manufacturers to find new ways of increasing sales. Cheap finance is widely available because interest rates are low, and it opens up markets to people who would not be able to make an outright purchase.
For those who want a new car but would prefer to avoid the hassle and cost of ownership, car leasing in Leicester is the obvious option and is available from providers such as Car leasing Leicester company Total Motion. You get the joy of always driving a new car, low monthly payments and no expensive maintenance bills.
The downside is that it can work out as more expensive in the long-run, you will have to pay for wear and tear and it may not be available to you if you have a poor credit history.
The pros and cons of buying
Buying is the traditional way of obtaining a car and many people still prefer it. You will own the car outright which makes it simple with no involvement of another company. You are free to sell the car at any time, for example if you no longer need it or you need the money. You are also free to modify the car in any way you like.
However, there are also some disadvantages. If you have to get finance to buy the car (a personal loan or increasing your mortgage) the monthly payments can be high, and it can end up costing a lot of money. You also have to remember that the car will depreciate and your asset is falling in value all the time.