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?