What are the pros and cons of leasing a car? Is it a better option for you than buying?
If you’ve been debating whether to give leasing a try, our lowdown on this popular way to drive a
new or nearly new car is exactly what you need.
What is car leasing?
Before we can discuss the pros and cons of leasing a car, it’s probably a good idea to explain exactly
what car leasing is!
Put simply, car leasing is similar to renting a house – you pay an agreed fee in monthly instalments to
rent a car for a few years. At the end of the lease agreement you usually give the car back, although
some companies will allow you to buy the vehicle (if you become particularly attached to it!).
The pros of leasing
The pros of car leasing do make it look like an enticing option – especially if you want to drive a
brand new car and change it regularly:
- Road tax and breakdown cover are included, and sometimes even servicing.
- The upfront and monthly costs are the lowest for a new car – especially a premium model.
- Your vehicle will be covered under the manufacturer’s warranty for the duration of the
lease. - Depreciation isn’t your concern because you’re giving the car back at the end of the lease
agreement. - Assuming everything goes to plan, you know exactly how much you’re going to pay.
- A car lease is VAT deductible if you own a VAT registered business.
The cons of leasing
There are some cons that need to be considered before you head off to the local dealership! Let’s
take a look at these for balance:
- You won’t own the car at the end of the lease, so you’ll have nothing to show for your
money. - You might be hit with high charges if you damage the car.
- Many lease agreements limit mileage, and going over these can be costly.
- Monthly payments may look low but they often don’t include VAT, and you might have to
pay a premium for certain colours or trims.
One of the most important factors to consider is that leasing is one of the best ways to drive a
premium car that would be way outside your usual price range, but it can often be less of a bargain
for a small car.
We hope that our guide to the pros and cons of leasing a car has been helpful, and if you’re a Leeds
local or visitor, maybe we’ll see you down at Trafalgar Street car park with your new wheels whether
you decide to lease or buy!