Private lease or buy your next car?
Looking for a new car? Now's the time to give private leasing some serious thought! It offers you all the benefits of owning a car without having to dip into your savings or get a loan. You pay a monthly fee, which includes all costs (insurance, maintenance etc.) except fuel. And while you focus on driving, LeasePlan takes care of everything else. Still in doubt? In this blog we compare private lease with buying to help you decide what’s next for you!
Fund your car yourself with savings or a loan. And, don’t forget running costs! You will be responsible for insurance, road-side assistance, tax and any out of warranty repairs.
You pay a fixed monthly fee that covers most of these costs. We take care of everything, except fuel and any insurance deductibles in case of an accident.
2. Maintenance & repairs
Repairs & maintenance costs are your responsibility. That includes drop-off, pick-up and arranging a replacement transport if your car needs to go to a garage.
This is covered in your monthly fee and we take care of everything to do with maintenance and repairs, including accident management and insurance. Just call and we’ll get you back on the road asap.
There are no restrictions on how much you drive or little you want to drive. But remember, the more you drive the less your car will be worth when you sell or trade it in.
You decide how much you expect to drive each year at the start of your contract. There may be extra charges if you go over the mileage limit, as the more you drive the less the car is worth once you return the keys.
When you buy a car, it’s yours to keep, sell or trade-in whenever you like. The only commitment you have is paying off any loans that helped finance the car.
With leasing, you commit to the duration of your lease, monthly costs and your mileage allowance at the start of your lease contract. Need to end the contract early? You can, but there will be an early termination fee. This fee is to compensate the risks and costs calculated earlier in your lease rate.
5. What's next?
When you own a vehicle, you can drive it for as long as you like. Want to sell? Selling your vehicle is your own responsibility and the cash left after you sell goes to you. Keep in mind the car will depreciate in value a lot in the first year and maintenance and repair costs will go up as the car gets older.
Has your private lease contract expired? Simply hand back the car and select your next brand new vehicle.
The differences between leasing and buying in short
- Financing: fixed monthly fee
- Repairs & maintenance: covered in monthly lease installment
- Commitment: contract duration, costs and mileage are fixed at the start of your lease contract
- What's next?: once your contract has ended simply hand back the keys & the car
- Financing: upfront investment with cash or loan
- Repairs & maintenance: needs to be arranged & paid by you
- What's next?: selling or trading in your car is your responsibility
There you have it
There you have it: 5 key things to know about leasing vs buying a car. Has this helped you decide what’s next for you? Feel free to get in touch with the LeasePlan team with any questions you may have or read more about the benefits Private Lease in our blog.