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Is leasing worth the money?

Leasing could be the cheapest way for you to finance a new vehicle.

This is because bank loans and other financing methods tend to cost more over the same term due to interest charges on the full value of the vehicle. In contrast, a lease allows you to finance your vehicle based on the depreciation value only.

Equally, when considering the costs involved with buying a new car and selling it over the same period a lease is also likely to cost you less as both are subject to the same depreciation. Leasing through contract hire is also the only option in which road tax is included at the prevailing rate for the full term. Add on the convenience of collection and delivery, the comfort or manufacturer warranty and breakdown cover and no worry over depreciation or selling costs, and leasing is not only a financially worthwhile option but is also the most convenient.

There are, however, options when leasing may not be right for you. If you are not intent on buying a new car, if ownership is important to you or you would like to own the car for longer than 3- 4 years, leasing may not be the most cost effective option for you.

 

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