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Is It Better To Lease Or Buy A Car?

There’s nothing quite like getting behind the wheel of a modern, state-of-the-art, brand new car. But the question you might be asking yourself is this - is it better to lease a vehicle, or buy one outright? There are advantages and disadvantages to both, depending on your circumstances and lifestyle, and here, in our informative guide, we can talk you through your options. 

Should I Lease Or Buy A Car?

The first thing you need to know is that car leasing - aka ‘Personal Contract Hire’, or ‘PCH’ - has skyrocketed in popularity in recent years, to the point that 6.5 million vehicles in the UK are now leased. And for many motorists, it’s a set-up that suits them perfectly. You work out your budget, you choose a vehicle you crave, and then you simply pay a set monthly fee for the duration of the leasing contract, which typically lasts two, three or four years. You then hand the lease car back at the end of that period. Leasing gives you the flexibility to change your car to suit your needs or as the situation dictates. When you buy a car, you own it outright - but you could still be paying-out each month to service a loan taken out to cover the cost. As a new car owner, you’re also hit with huge amounts of depreciation the minute you drive the car off the forecourt. 

What Are The Advantages Of Leasing A Car?

Buying a new car outright is not cheap. An entry-level Ford Fiesta, for example, will set you back a cool £17,500. A lot of families don’t have that kind of money sitting around in their savings account. And in that case, they might feel like they’re access to a modern, reliable, safe new car is limited for them. But leasing offers a new route, and it’s one that really does provide social mobility.

Benefits of Leasing

  • Most people are eligible to lease.
  • It’s a highly affordable way to drive a new car.
  • You can drive a new car every 2 to 5 years.
  • Leasing’s affordability often allows you to drive a better car than you’d expect.
  • You avoid the problems and expenses of ageing cars.
  • Initial payments and ongoing instalments often lower vs. buying, helping protect savings.
  • If you’re tempted to go electric, leasing puts a whole host of plug-in vehicles at your fingertips.


  • Road tax, breakdown cover, MOT are all included.
  • You get great reliability as the vehicle is at its best.
  • Fixed cost motoring - you know exactly what you’ll be paying out every month.
  • There’s no depreciation risks.
  • There’s no selling concerns at the end.
  • Business leasing offers huge benefits for firms, no matter their size or fleet needs.
  • Many lease vehicles are in stock and ready to be delivered.

What Should I Consider With Leasing A Car?

Leasing isn’t for everyone. You might be a classic car enthusiast with no need for an ultra-modern vehicle, or you might be someone who doesn’t want the hassle of changing their car every two or three years. Here’s some other leasing facts to consider: 


Consideration Points for Leasing

  • You don’t own the vehicle and have nothing to sell at the end.
  • You need to look after your vehicle and make sure it meets guidelines for Fair Wear and Tear.
  • You need to stay within your annual mileage to avoid additional charges.
  • An ‘initial payment’ is required up front in order to bring down the cost of the monthly leasing fee. 
  • Early termination can be expensive.
  • It can be difficult to lease if your credit rating is extremely poor.
  • A lease deal does not include insurance as standard and you’ll need to have fully-comprehensive cover in place for the duration of the contract. 
  • There’s no option to purchase the vehicle at the end of the leasing period. 

Want to know more about car leasing? Get in touch now with our dedicated leasing consultants on 0118 920 5130 or email us at enquiries@selectcarleasing.co.uk

What Are The Advantages Of Buying A Car?

If you’re the sort of traditional consumer who wants to own a car for a good number of years, and you‘ve got deep enough pockets to stomach both the outright cost and the depreciation, then buying a car might be a sensible choice for you. Here are a few benefits: 


Advantages of Buying

  • You own the vehicle, so have something to sell at the end.
  • You can treat your vehicle as you wish.
  • You can do as much mileage as you wish.

What Are The Considerations Of Buying A Car?

The model of car ownership and enjoyment is changing - and buying a vehicle outright might not be in your best interests, particularly if you’re among the many thousands of people who like to stay at the cutting edge of motoring technology. Here are some things to consider:


Consideration Points for Buying

  • A large deposit or lump sum is often required, which can deplete your savings
  • Your new vehicle is a depreciating asset, losing much of its value in the first 2-3 years.
  • If you take a loan to purchase outright, you’ll still face regular monthly payments.
  • It’s harder to change your vehicle every two or three years.
  • You’ll need to organise and pay road tax, breakdown recovery and MOT yourself.
  • Selling can often be a big hassle and very time consuming.
  • Unless you take out a service and maintenance package, you could be hit with huge repair bills.
  • As the car gets older, it’s more likely to break down.
  • More expensive hybrid or electric vehicles may be beyond your budget.

Is It Cheaper To Lease Or Buy A Car?

This question depends on how solid your finances are. As an example, one of the more affordable electric cars, the award-winning MG5 EV, costs north of £28,000 to buy outright, but can be leased for as little as £246 per month. And there’s a lease vehicle to suit all budgets, from £125 per month superminis to £2,000 per month supercars. Take a look at our regularly-updated ‘hot deals’ pages and you might be pleasantly surprised by what vehicles you can afford. That’s thanks to Select Car Leasing’s market-leading links to industry, which we can pass on to our lease customers.

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