Lease or Buy?

When you're looking to replace your car, you may be wondering how to go about it. You might want to buy your car, or perhaps you only need a car for a certain length of time. You may not be sure which car is right for you.

We explore the upsides and downsides of these options, so keep reading to find out more and answer the question, “should I buy or lease a car?”

What is a car lease?

Leasing offers motorists a way to drive away with a new car easily. Based on how long you will need to use the car for and how far you will be driving, as well as how much you wish to pay as an upfront cost, you will be able to make monthly payments. These payments should be affordable for you, and allow you to use the car for as long as you require it (this is usually up to four years).

What are its limitations?

Is leasing a car a good idea overall? Leasing a car might sound like a great idea, but there are some limitations that you should consider before jumping in. For example, you will need to stick within the given mileage limits, and you will be liable for any damages that occur. It is also worth noting that you are not “paying off” the car in order to automatically purchase it - in a lease contract, you will not own the car at the end of the lease term.

What are the main differences between leasing or financing a car to buy?

There are some differences with lease vs finance car options. Buying a car with finance is a popular choice, as it allows you to split the cost in a similar way to leasing. You do not always have to make a downpayment at the start of the finance term, and many car finance contracts are designed so that you continue to pay your repayments until you own the car. There are some exceptions, such as with PCP finance options, where you must make a final “balloon payment” in order to own the car, or hand it back.

In what circumstances could leasing be right for you?

Leasing may be right for you if you do not want to own a car, and only want to use it for a few years. Some drivers lease their first car as the repayments are lower than with buying a car on finance. Leasing a car can also be a good choice if you are planning to move somewhere where you will not need a car, and don’t want to buy and sell one.

Is it better to lease or finance a car? There are benefits and drawbacks to both leasing and buying a car, so think carefully about which is right for you before deciding to lease or buy a car. Lease vs finance will depend on what you want the final outcome to be - and if you aren’t sure which is right for you, get in touch with Autozone. We can discuss your options when it comes to leasing vs buying to get a better idea of what might work best for you.