Squeezed Britain: Avoid depreciation costs: Buy or lease a car?

Latest statistics show sales of brand new cars in the UK remain below pre-pandemic levels, with cash strapped motorists seeking more affordable alternatives.

Amid the cost of living crisis, the experts at LeaseCar.uk and its sister site LeaseElectricCar.co.uk give the run-down about why leasing a car could be a better option than buying a second hand car, if purchasing a new car is out of your budget range.

Sales of new cars in the UK remain restricted by low consumer confidence and limited supply caused in part by a global shortage of computer chips.

And there are numerous benefits which could help financially hard-pressed motorists if they opt to lease their next vehicle.

A close up of a car tireDescription automatically generated with medium confidence

A spokesman for LeaseCar.uk said: “Leasing a vehicle provides motorists with a lot of financial benefits – both short and long-term, which mean it could be a viable option for many households where every penny is under scrutiny at the moment.

“As the cost of living crisis continues, it is well worth people exploring further to see if leasing a car could be right for them at this time.”

Here are some of the key advantages of leasing a car according to the experts at LeaseCar.uk:

Affordability: Drivers who want a new car but can’t afford to purchase a new vehicle could benefit from leasing a car. It means they could still drive away with a brand new vehicle under leasing terms which might otherwise be out of their price range.

Monthly outgoings: Depending on the type, model and age of vehicle, it is highly likely leasing a car will result in lower monthly payments than a traditional car purchase, which helps when you are on a tight monthly budget.

Maintenance: The costs of maintenance are likely lower than when you own a vehicle which is of great appeal when trying to avoid unforeseen costs at the garage for urgent and sudden vehicle repairs that you have not accounted for.

Depreciation: People say that as soon as you drive a new car off a garage forecourt, it instantly depreciates in value. Leasing a car takes away the worry of depreciation.

Flexibility: After your chosen lease period, you might be able to exchange the car you have driven for a brand new lease car, to enjoy the benefits of a new vehicle again.

Depending on the terms and conditions of the contract signed, a lease car can also have benefits in terms of type and amount of initial rental that is needed to secure one, as opposed to what might be needed when purchasing a brand new car.