Are you in the market for a new car? If so, you will doubtless have people telling you that buying a brand new car is a bad idea. They will also tell you that leasing your car, instead of buying it, is also a bad idea!
Getting a brand new car is one of the biggest purchases you will make in your life. It is important that you make the right choices when you get a new car. If you don’t, you could end up being stuck in an expensive finance plan.
Should you buy a brand new car?
By this point, you might be questioning whether you are making a good decision by getting a brand new car. Here are some reasons why it can be one of the best decisions you will ever make:
- *Choice. You can specify what colour your new pride and joy will come in. You can also specify any factory optional extras, such as bigger alloy wheels or satellite navigation;
- *Reliability. Buying a used car can sometimes feel like a lottery. But with brand new cars, you know that you are the car’s first owner;
- *Efficiency. We all know that new cars will have the latest fuel-efficient and eco-friendly engines installed in them;
- *Technology. Your inner geek will love owning a brand new car. Especially if it contains new ways to help you interact with your smartphone!
Why is leasing better than buying?
If you want to get behind the wheel of a brand new car, it is better to lease it than it is to buy it.
The thing about cars is that they all lose value over time. Even that Ferrari California that you’ve always dreamed of will lose some value at some point!
The motoring fraternity won’t tell you the biggest depreciation occurs in cars aged between new and three years of age. And, on average, you can expect your car to lose up to 40% of its value in the first year.
That makes for some shocking reading, right? When you buy a brand new car, depreciation is something that you have to take a hit from.
But with leasing, things are different – and better! When you “buy” a car under a lease plan, you have full use of it for a period of say three years or so. After that period, you have the option to buy the car outright, hand it back or trade it in for another new car.
According to the GK Group, the other main selling point of leases is cost. Repayments for lease agreements are always cheaper than they are for hire purchase plans. Hire purchase is what you’d use if you were buying the car outright.
Is leasing for you?
Leasing a brand new car is the perfect option for you if any of the following applies:
- *You want to change your car after three years or so;
- *You want to keep your payments low;
- *You want to pay a lower deposit for your finance.
If you have any questions about leasing, feel free to comment.