Leasing or Buying

• Leasing- Monthly costs of leasing will always be less than the monthly costs of a new car loan where the same priced car and same term is applicable. The monthly lease payments will typically be between 30 and 60 percent cheaper than the monthly payments you would be making out on the same car.
• Should the buyer sell or trade in the car after the loan term is over, and should the buyer resell the car for its market value price the buyer and the leaser will have both spent approximately the same by the end of their respective terms. If you are the type of person who would look to resell your car after the loan term is over, it is probably not worth it, for you will only save as much as the leaser, and that is only if you sell your car for market value price which is easier said than done, also why bother with the hassle, as with the leaser, they won’t have to worry about selling their car at all, they simply take the car back to the dealer and leave them with the burden.
• Buying a used vehicle is therefore only really beneficial if the buyer is planning on keeping their car after they have paid off the loan. This way you will no longer have to pay anything toward ownership of you vehicle, however your car will no longer be under warranty and you will have to pay for any services or maintenance yourself. Obviously if you keep one car for a long time you will save money, whilst you will have spent more money from the get go, the fact that after 3-5 years you will no longer have any more payments to make, means that someone who continually leases throughout the time you drive your one car, will eventually catch up with how much you originally spent and surpass it, whilst you only have to worry about buying petrol.
• Whilst it sounds like a good idea, long term saving is not always an immediate priority and can be more trouble than it’s worth. Imagine a teenager playing games at the arcade, they probably won’t miss £2 every other day on their favourite game, yet paying £40 for it would likely make a huge dent in the pocket and put them out of action for weeks! A sacrifice they may not be willing to make, especially when the new version of the game is expected to come out in the next few years.