Buying vs Leasing a Car
The choice between buying and leasing is often a big talking point. Here at Vavoom we take a consultative approach to ensure you make an informed decision that best fits your requirements and circumstances. As car purchase prices rise together with the demand for the latest safety and technology features, leasing has increasingly become the alternative to outright purchasing a vehicle.
Below we highlight some of the big advantages and disadvantages of leasing, to help you work out if leasing is for you.
- A bespoke contract to suit your requirements
- Fixed monthly rentals
- You may be able to drive higher priced and better equipped vehicle than you might otherwise be able to purchase
- You can add a maintenance package to cover routine servicing in line with manufacturer guidelines for the duration of your lease contract
- You can swap into a new vehicle every 2, 3 or 4 years so you're always driving an up to date model
- You will not own the car
- Lease contracts specify a limited number of miles. If you go over that limit, there can be excess mileage charges, however Vavoom work proactively with you to try and reduce the risk by allowing contract amendments where possible
- End of contract damage charges – all Vavoom vehicles are inspected as per BVRLA Fair Wear & Tear Guidelines please refer to our end of contract process for more details
One of the biggest questions that those who are looking for a new vehicle ask themselves is 'Should I buy or lease a car?'. There are of course benefits to both, but the key to deciding which is best for you is to understand how each of those benefits applies to you. For some, buying the latest and greatest car may be exactly what they want, but for others who have to work with a tighter budget, car leasing may be the more sensible option. One of the biggest obstacles to overcome when buying a new vehicle is the price tag, which only increases the further upmarket you go.
When leasing a vehicle, you can get around the large upfront cost that may have otherwise prevented you from getting your dream vehicle, by breaking it down into monthly payments. This can allow you to drive higher-end vehicles that may have previously been way out of your price range. Along with giving people access to a wider range of vehicles, other benefits of leasing include favourable payment plans that can help you to save money, as well as lease deals that put you in your dream car.
At Vavoom, we pride ourselves on being able to offer deals that cater to a range of clients' different needs and requirements. If you have any questions about the lease agreement, monthly costs involved or would like to enquire about any of the vehicles available on our website, our friendly team is always on hand to help. You can call us on 0344 264 4177 to speak to a member of our team directly, or email us at email@example.com with your message. We're located in Cheadle, which allows us to service the local areas of Manchester, Liverpool and Birmingham, including cities nationwide such as London, Leeds and Sheffield.
Buy or lease a car? The advantages of leasing
One of the first things people look for when researching lease deals is the advantages involved. For individuals, a personal contract hire vehicle can be much more achievable than buying a car outright. The large upfront costs that are involved can be broken down into more manageable monthly payments, which can be a massive help when it comes to budgeting. When you lease a vehicle you can enjoy hassle-free motoring as you don’t have to consider selling the vehicle at the end of the lease, when you would like your new vehicle. Instead, once the lease term is up, you'll simply return the vehicle to us, allowing you to begin another lease deal with a brand new vehicle.
If one of the fears you have of leasing deals is that they won't allow you to have the vehicle for as long as you would if you were to buy it, don't worry. You can decide your lease period and even choose other factors such as mileage limit and whether or not to include breakdown cover. This means that although you may not be able to drive the same vehicle for 10 years, you will benefit from a range of other add-ons. You must also consider how quickly vehicles depreciate and how, even in 3 years, a new car can quickly feel old due to the continuous release of new models featuring cutting-edge technology. With leasing, you never have to worry about driving an old vehicle, and as soon as your lease ends, you can choose from our range of deals on the latest models available.
Electric vehicles are undoubtedly the future, as proven by the government's ban on petrol/diesel vehicles which comes into force in 2030. With the large impact that petrol/diesel cars have on the environment, due to the amount of CO2 emissions released, the ban can't come soon enough. Pre-empting this date, many drivers have turned to electric vehicles already, which offer more than just environmental benefits. With the increasing number of electric and hybrid vehicles available, the strain that combustion engine vehicles are having on the environment is being reduced, as they are replaced with arguably more effective electric motor vehicles.
In the case of Tesla, each of their models features stunning modern technology and functionality, such as autopilot, which you wouldn't find in most other petrol/diesel cars. As more electric models enter production, the rate at which new cars are released increases, which can then mean the technology inside an EV becomes outdated after 3 years. This is where another benefit of leasing comes in, as you would be able to finish the lease and get a new electric vehicle with brand new technology, avoiding depreciation risks and selling at a much lower price.
This means that when it comes to choosing an electric vehicle, opting for a lease contract is a smart move, as it allows you to benefit from the very cutting edge of EV technology. As a leasing provider with a wide range of vehicles available, you'll be able to find your dream EV on a deal that suits you. If you're looking for a high-end EV but it has a large price tag, the affordable lease payments we provide can turn that dream into a reality. Another factor to consider when choosing an EV is that, due to a lower number of moving parts, electric vehicles typically require less servicing and are less likely to break down. However, if you're opting for a petrol/diesel engine or want to make sure that you're covered in the event of unforeseen circumstances, we also offer maintenance packages as part of our lease deals.
It's not just for personal use that leasing can be beneficial either, as leasing is also a great choice for a business vehicle. Our business car lease deals can allow businesses to acquire an entire fleet of vehicles on a lease deal at a far more cost-effective rate than if you were to buy each of the cars outright. Choosing Vavoom as your lease provider will also allow you to put your staff in a fleet of brand new vehicles that reflect your company's brand and professionalism. With our fleet management portal and maintenance packages, leasing a fleet can save your business money in both the short and long term. As the cost of the vehicles will be broken down into monthly payments, this allows businesses to budget effectively and ensure cash flow isn't damaged. When leasing a car for business use, you can claim back 50% of the Finance VAT and 100% of the Services VAT.
When choosing your lease deal, you'll be able to select terms that suit you and your needs. This means choosing the lease term, annual mileage and initial rental period. With some deals, you'll be able to choose specific aspects of the vehicle too, such as the colour, trim and other interior/exterior features. This means that you don't have to settle for a vehicle with features that you don't like. If the option is there, you can customise the vehicle to your liking.
Are there any disadvantages to car leasing?
When it comes to leasing vs buying, there may be advantages for some, which others may view as disadvantages. It's all about perspective and understanding whether leasing arrangements are right for you. For example, the main factor that some would view as a disadvantage is that you don't own the vehicle. Leasing a vehicle means that once the leasing period has ended, you must return the car to the provider. Of course, this means that you can't sell the car afterwards but with the risk of depreciation, this isn't as big of an issue as some may think. The ability to get a vehicle that you otherwise may not have been able to afford, as well as the fact that you avoid having to sell it at potentially a much lower price than what you paid, could be seen as a huge bonus.
As you own the car, if you buy outright, you won't be able to benefit from any service or maintenance packages that can be included as part of a lease. This means that you'll have to find other ways of paying bills in the event of a breakdown and this could disrupt your cash flow. With this in mind, it's also important to remember that if you return a lease car with damage, you may have to pay extra charges. This is a key difference between leasing and buying, and whilst some may be happy to pay service costs as they arise as part of owning the vehicle, it may pose a threat to cash flow and cause issues for others. This is a perfect example of how owning the car outright would be an advantage to one customer and a disadvantage to another.
When choosing the initial terms of your lease, you will be required to select an annual mileage. This is to estimate the usage of the car and may have an impact on the lease cost. If you exceed your mileage restrictions, you may be subject to excess mileage charges. Although this may seem like an issue, we'll work with you to ensure that the mileage you select is as accurate as possible and help you avoid getting caught out. Depending on the terms of your deal, it's also possible that if you have exceeded your usage for one year, your overall mileage allowance will have you covered. For example, if you choose a 30,000 mileage limit over three years, that breaks down to 10,000 miles per year. If in the first year you reach 12,000 miles, you won't be charged as your remaining allowance amounts to 18,000 miles. This means that if you travelled just 8,000 miles the following year and 10,000 in the final year of your lease, you would still be within the mileage allowance you chose.
Get in touch
At Vavoom, we have a range of fantastic deals available for those who know that leasing a vehicle is right for them and want to enjoy the benefits of a lease deal. If you've got your eye on a particular model or brand of vehicle, explore the deals available on our website to find your dream car. If you can't find what you're looking for or would like more information on the benefits of leasing vs buying, please call us on 0344 264 4177 to speak to a member of our team directly, or email us at firstname.lastname@example.org with your message. Our friendly team will get back to you as soon as possible and help you in any way they can. If you would like help with EV charging solutions, we can help with that too - please visit our energy solutions page.
We're based in Cheadle, Stockport, which is part of Greater Manchester, allowing us to service the local areas of Warrington, Bolton and Wigan. Our extensive service also incorporates clients nationwide, including cities such as York, Nottingham and Leicester.