A lot of people dread the moment when they realise that it’s time for a new car. Many drivers will keep their vehicles until the last possible moment. Sometimes it’s because they genuinely love their current car, and they don’t want to drive anything else. Sometimes it’s because a new car tends to be a major expense. And let’s face it, no one has a huge amount of spare cash to throw around right now. Everyone is looking to save where they can and that’s one of the reasons why so many people are going with leasing.

As you’d expect, there are pros and cons to buying and leasing. And while there’ll always be someone who thinks that there’s one clear best choice, the right one for you will depend on your needs and situation.

Leasing a Car: The Pros and Cons

Let’s start with the basics, shall we? Leasing a car essentially means renting it for a fixed period, typically between two to four years. You’ll return it to the dealership at the end of the lease term. Let’s take a look at some of the most important factors in the for and against arguments.

Pros:

1. Lower Monthly Payments: One of the biggest advantages of leasing a car is that your monthly payments are typically lower than if you were to finance or buy the car outright. This is because you’re only paying for the car’s depreciation during the lease term, rather than the entire cost of the car.
2. A New Car Every Few Years: Leasing allows you to drive a new car every few years without having to worry about selling or trading in your old car. This is perfect for anyone who loves to enjoy the latest features and tech.
3. No Resale Hassles: Since you’re returning the car to the dealership at the end of the lease term, you don’t have to worry about the hassle of selling or trading in the car. No one wants to end up on eBay or Gumtree asking if someone will just come along and take your knackered car away for 20 quid.

Cons:

1. Mileage Restrictions: Most lease agreements come with mileage restrictions, typically between 10,000 to 15,000 miles per year. You might have to pay a fee if you go over it. You don’t need to worry too much about this if you’re mostly using the car for commuting or dropping your kids off at school but it’s worth keeping in mind if you’ve got any family road trip holidays planned.
2. No Equity: Unlike buying a car, leasing doesn’t build any equity, meaning you won’t have anything to show for your payments at the end of the lease term.
3. Potential Fees: You may be charged fees at the end of the lease term for excess wear and tear, damage, or any other fees outlined in the lease agreement. You should always check your contract to make sure that you understand what you might be liable for.

You Can Find No Deposit Leasing Options

One of the biggest of car leasing is that you can find no deposit leasing options. This means that you don’t have to put down a large lump sum upfront and can spread the cost of the car over the lease term. No deposit car leasing options can be a great choice if you don’t have the cash to put down a deposit, or if you prefer to keep your cash flow for other purposes. The team at Willow Leasing can help you find the perfect car leasing option for you with no deposit.

Buying a Car: The Pros and Cons

Buying a car involves financing or paying cash for the full cost of the car and owning it outright. This comes with a certain amount of independence but there are still a lot of different factors that you’ll need to consider.

Pros:

1. Ownership: When you buy a car, you own it outright and can do with it as you please. You can modify it, drive it as much as you want, and sell it whenever you’re ready for a new car.
2. No Mileage Restrictions: Since you own the car, you don’t have to worry about any mileage restrictions or fees for exceeding the mileage limit.
3. Equity: Buying a car builds equity, meaning you’ll have something to show for your payments at the end of the financing term.

Cons:

1. Higher Monthly Payments: Buying a car typically requires a larger down payment and higher monthly payments than leasing.
2. Depreciation: Cars depreciate in value over time, meaning you’ll likely sell it for less than what you paid for it.
3. Resale Hassles: Selling or trading in a car can be a hassle, as you have to find a buyer and negotiate a price.

Ultimately, every option has its ups and downs, but with the help of this guide you can make an informed choice that works for you.