Leasing vs buying a car

When you look for a new vehicle, what is it that you want? Some drivers just want a car to get from A to B whilst others choose vehicles due to trends or an emotional connection. Before deciding which road to go down, you should explore the options.

What is the difference between buying and leasing?

Leasing a car is much like a vehicular version of Netflix: you pay a monthly amount for a certain length of time. Most car leasing companies offer 24-48 contracts, but with Flexxilease you can lease starting as low as 3 months.

Once your lease has ended, you have the option of returning the car or in some cases purchasing the vehicle at a predetermined amount – whereas buying a car means you own the car outright as soon as you’ve paid the amount.

How do lease payments work?

Overall, lease payments tend to be generally lower than loan payments as you are paying a set amount over the lease period. When buying a car, monthly car loan payments are calculated based on the sale price, the interest rate, and the number of months it will take to repay the loan.

Lease payments depend on factors including:

• The cost if you were purchasing the vehicle.
• Length of the lease: how many months you are leasing the car.
• Expected mileage: the lease sets a certain maximum number of miles you can drive the car each year.
• Taxes and Fees: these are added into the lease and affect the monthly cost.

Disadvantages of leasing:

You don’t acquire any equity when you are leasing a car. Much like renting a house, you make monthly payments but do not own the property, which means you can’t sell the vehicle. When you purchase a car, you can trade or sell the vehicle if you have a random bill sprung upon you or to cover the cost of buying a new car.

Advantages of leasing:

You can choose from our extensive range of vehicles, select your contract length and preferred mileage when you decide to lease from Flexxilease! Some of the other benefits include:

• Low upfront payments
• Fixed monthly rental rates
• Wide range of vehicles
• 3-18 month contracts
• Nationwide delivery
• Road Fund Licence, manufacturer’s warranty & breakdown cover
• Personal & business customers

If you would like to reap the benefits of leasing a vehicle, contact us today and we will help you find the perfect motor for you!