Should I Lease or Buy a New Car in Burford?

Should I Lease or Buy a New Car in Burford?

Posted on June 2, 2021

Planning for a new car? Wondering whether to lease or to buy? You’re not alone. Our Burford auto loan team handle queries like this all the time. It isn’t a question we can answer for you but we can point you to some pros and cons of each.

We like this method of answering unquantifiable questions. It provides value even though we cannot directly answer the question.

So here are the pros and cons of leasing a car versus buying a car.

Pros of leasing

Lower monthly payments – Most people lease because they can drive a new car for less each month. We all have a lot on our plates and saving even a couple of hundred dollars a month can make a difference.

Drive brand new cars – New car leases are factory fresh, brand new cars. If you like driving the latest models, it’s a cost-effective way of accessing them.

More expensive cars – The lower cost of leasing means you could lease a car you may not be able to afford if you tried to buy it.

Cons of leasing

You don’t own anything – You’re paying a set amount per month but won’t own anything at the end. This can seem like a waste of money to some.

Not all leases are cheaper than an auto loan – Many leasing companies provide great value but not all do. We have seen some lease deals that are more expensive than buying the car!

End of lease fees – End of lease fees are one of the main hurdles for people considering leasing. Lots of companies are fair with their fees but not all are. Excess mileage, wear and tear, reconditioning fees and more can work out quite expensive.

Pros of buying a car

You own it at the end – Your monthly payments may be higher but you’ll own a valuable asset at the end of it. You can use it as a trade in or sell it to provide a down payment for the next one.

Can save money over longer terms – If you’re not interested in changing your car every 3-4 years, you could save a lot of money by paying off your car loan and keeping your car.

No end of lease fees – No excess mileage, no wear and tear and no fear of fees!

Cons of buying a car

More expensive per month – Car loans are more expensive per month than leasing which can put some budgets under pressure.

Maintenance and servicing – Once the free servicing period has run out, running costs are all down to you. While it won’t be much to begin with, the older the car gets the more expensive keeping it on the road gets.

Down payments – While many leases want some money down, a down payment on a car loan is usually higher. While the down payment offsets the monthly cost of the loan, there is still a period where you have to save for it.

There is no ‘best’ option here. The pros and cons of leasing versus buying depends on your particular circumstances.

The good news is that our Burford auto loan team can help with either option!

When you’re ready to lease or buy a new car, get in touch with the Burford auto loan experts at Northway Ford for great deals on auto finance.

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