Car buying advantages & disadvantages
Are you looking for a new vehicle and you're not sure whether to lease or buy?
With second hand vehicles fetching such low residual values, we believe that leasing is ideal for today's market.
However leasing and buying are very different - what's right for some isn't right for others. So it's important that you understand the differences.
Here are the advantages and disadvantages of buying a new car or van.
Buying advantages
1) You can sell the vehicle
You can sell the vehicle when you choose to - Although you will have the hassle of selling it or trading it in for a low payment.
2) Maintain the vehicle to your standards
You can be rough and demanding on your vehicle without having to pay any penalties.
3) Ownership
You own the vehicle.
4) No mileage limits
There are no mileage restrictions.
Buying disadvantages
1) Large depreciation costs
After purchasing your vehicle, it will immediately depreciate in value. This is particularly so in today's economic climate as we see the price of second hand cars drop massively.
2) Hassle of disposing your vehicle
When you come to sell your vehicle, you have the hassle of selling it. Or you may opt to receive a low payment for a part exchange.
3) Costly repairs
You are responsible for repair and maintenance costs after the warranty expires.
4) Drive a less prestigious vehicle
You may not be able to afford as prestigious a vehicle as you would if leasing (due to higher monthly payments).
5) Driving an older vehicle
People tend to keep a bought vehicle for longer to spread the cost over a number of years. As cars get older they lose their 'looks' and you're likely to have higher maintenance costs.
6) High initial outlay
In most cases, you have to save up a large deposit.
7) Taking out a loan?
If taking out a loan, monthly payments will be higher than leasing payments.
Advantages and disadvantages of leasing
Have you seen our pages on the benefits of leasing and important things to consider?
