Leasing is absolutely cheaper than buying.....
When you compare brand new vehicles.
Buying a vehicle is only cheaper, if you either buy very cheap, and run it for a while, or you buy a new vehicle, and keep it for say 8-10
Years.
I bought a van, but I also lease a pick up.
Over the 4 years I’ve had the pickup, it will save me about £12,000, instead of buying.
I’ve got no hassle with worrying about repair bills, and even down time. The leasing company will
Provide me a replacement if it breaks down and needs repaired.
Both lease and buy have positives and negatives.
Sometimes it’s nice every 3 or 4 years to just get a new shiny vehicle that is reliable and won’t cost you money in down time.
I really can't see where leasing is cheaper than buying. It may well be lower monthly payments but on the long run will work out more expensive. Could you break down where you are saving 12K on the pick up, are you forgetting that if you buy you then have an asset?
If you break down the payments.......
So the vehicle I am currently leasing now, is £32,000 new. ( brand new pick up with all the optional extras)
But over the 4 years I will be leasing it, I’ll only have paid £18,000.
So yes buying could work out cheaper in the long run, IF i was to keep it out of warranty, and run it for a few more years after it was paid off, but generally as soon as I’ve paid off a vehicle I’ve always just traded it in and started again.
This way I’m not having to put down a big deposit, I’ve just got a set monthly payment (which is tax deductible) and hassle free driving in a nice new vehicle.
It’s the first time I’ve ever leased a vehicle, but I can definitely see the appeal.