Leasing Vs. Buying a Car

There are several great advantages to leasing a car, but sometimes, especially in this uncertain market, it may be advisable, for example, to buy a used Audi instead. Some cars don’t lose value as quickly as other models. It’s their classic design and reliability that make them better second-hand cars over the others.

There are however some advantages to leasing a car, especially if you want to buy a car which is expensive and has a value which will depreciate quickly.

When you lease a car your monthly payments would be higher in comparison to the loan you would have to take out to buy a car. You will, however, have cover if the car breaks down; the company will take care of the repairs and will give you another car in the interim. The leasing company will also take the car away at the end of the contract, unless they have an extension option. Remember leasing is different from higher purchase, in effect it is a long term car hire.

The greatest benefit when leasing a car is the ability to receive a new car every couple of years. As well as having a new car, the deposit that you have to put down on the car will be smaller. If the car you have your eyes on is expensive then leasing may be a good option, as loans for expensive cars will have higher monthly payments and the bank may not lend you that amount of money.

On the other hand if you buy a car you may also have monthly payments, but at the end of the period you will have purchased your car.

In the end it depends what you want in terms of service and how much you can afford to spend. It also depends if you can buy the car outright. There are many things that you need to take into account. But sometimes you are better buying a car which is likely to hold its value, so you can recoup some of your money after a few years.

Audis are especially good at keeping their value, so this avenue is worth exploring. The second hand car market is also a good place to start when contemplating the purchase of a car; you may be able to pick up a reliable car for less than you would spend on payments for the lease car.