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Is leasing a car better than buying one?

 Published 15th February 2024
Driver Guides  General Guides 
When it comes to the time to get yourself a new set of wheels, people typically start to search through all the listings on well-known auction sites and online car showrooms to find the best deal. This usually entails setting your budget and then using the filters to find the newest model in your class, with the lowest mileage, the latest technology and bodywork with minimal scratches.

However, what if we said you can get brand new models, in perfect condition, covered by manufacturers’ warranties, with all the best features for a lower monthly cost, would you be interested?

Of course you would.

It's cost-effective to lease a new car

With the cost-of-living crisis forever looming over our heads, it is always prudent to look for ways to tighten your belts and lower your outgoings, and vehicle costs are one of the highest hits to our monthly budgets. Leasing your vehicle can reduce these massively whilst also offering further financial incentives.

Initial cost

Leasing a car often requires a lower initial rental payment compared to standard car finance, and in some cases, you might be able to lease a car with no initial rental payment at all. This can make obtaining a vehicle a lot more accessible to people who don’t have a great deal of savings.

Monthly payments

Monthly lease payments are typically lower than loan payments with traditional car financing because you’re only paying for the vehicle’s depreciation during the lease term, rather than the full purchase price. This allows you the opportunity to either save money on your car costs or get a higher-spec model whilst staying within budget.

Under warranty

Leased vehicles typically remain under the standard manufacturer’s warranty for the duration of the lease, which lasts for a set period or mileage limit. This means you don’t need to worry about any costly repair bills should you experience any mechanical failures or manufacturing defects.

No MOT required

As all the vehicles we supply are new, they do not require an MOT until they reach the age of 3 years or older.

Tax advantages

You only pay VAT on your monthly payments, not the vehicle’s total value. For business users, leasing can offer additional tax benefits, as lease payments can often be deducted as a business expense, reducing the overall taxable income.

Government schemes for electric vehicles

Though these may not benefit anyone who leases a petrol or diesel vehicle currently, the chances are, in the very near future, you will only be able to lease an electric vehicle as the ban on the production of internal combustion engine powered cars becomes law in 2035. It is worth keeping an eye on the government and local authority websites for any new schemes in place to encourage drivers to go electric. There will also be savings on entering low emission and congestion zones as electric vehicles are exempt from the charges.

Flexibility and freedom

Buying a brand-new car is famous for being the quickest way to lose a lot of equity, but it is also often a long-term commitment as people typically keep the same vehicle for an average of 10 years. Even if you are someone who maintains your vehicle to the highest standards, by the time it gets a few years old, it will have been left behind by newer models with better performance, greater technology and mechanical or battery advancements.

Nobody wants car envy, so by leasing your car, you are also leasing flexibility and freedom in more ways than one.

Get a newer model more often

Leasing contracts typically last for between two and four years, and many customers then opt to change vehicles at the end of the term for a newer model. This allows you to stay up to date with all the latest features and try out different manufacturers and models. It also makes it easier to change to a more suitable car should your circumstances change, such as swapping your sporty two-seater for a family SUV if you have become a proud new parent.

No long-term maintenance costs

After a few years of owning your own car, even if bought brand-new, it is likely to have problems occurring that cost you money. Even if the car is perfectly maintained and driven well, you will start to experience maintenance costs associated with an aging car. Since a lease car is new, you should expect minimal maintenance costs for the duration of your agreement. You may also want to wash it once or twice.

No depreciation concerns

Leasing a car removes depreciation concerns for the lessee because the financial risk associated with the vehicle’s depreciation is assumed by the finance provider and not the individual leasing the car. When you lease a vehicle, you’re essentially paying for the use of the car over a specified period and a set number of miles, and your payments are calculated to simply cover the cost of the car’s depreciation during this time. You do not have to worry about the car’s initial or end of lease value.

No trade in or resale hassles

Leasing a car removes any trade-in or resale hassles at the end of the lease term since the responsibility of selling or trading in the vehicle falls to the finance provider and not the individual who leased the car. This not only removes any end of lease hassle, but also provides you with flexibility. At the expiration of the lease term, you simply return the vehicle, shake hands, and walk away. This leaves you free to take out a new lease on a different car or, if leasing isn't for you, choose another way to purchase a vehicle.

Find your perfect car with Gateway2Lease

As shown above, there are many reasons to choose to lease a car instead of buying one, so the next step is finding the perfect car for you.

Whether you have an idea of what you want or need inspiration, Gateway2Lease is the ideal company to help guide you to the most suitable vehicle for your needs, with flexible terms and at a competitive price.

Explore our wide range of cars to lease, including everything from snazzy hatchbacks to luxury saloons or family SUVs. If you want further information on any deals, then chat to our expert team and discover all options open to you.

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