Is leasing a car a better option than buying for you? There are some potential advantages of leasing a car compared with buying one which include lower costs, less maintenance, conserving capital and the avoidance of disposal costs. There are some unbelievable bargains available when leasing a car and if you are slightly flexible it can cost half as much to lease a car than to own it.
The AA has stated that after 3 years the average car will have lost around 60% of its value with as much as 40% of the value disappearing in as little as 12 months and that is if the car does no more than 10,000 miles per year. If you lease a contract car there is protection from the negative effects of depreciation because you only have the car for a short period (typically 3 years) after which a new replacement car is due.
If you are looking at the high end of the market financing an expensive car can work out a lot cheaper. For cars that don’t depreciate as fast as the average vehicle monthly payments to have possession of the car can be as much as 60% cheaper than a personal or business loan. Obviously if you use a loan to buy a car at the end of the loan you will be the sole owner but you have also suffered the cost of depreciation. When leasing you always know a replacement new model is at the end of each agreement.