Car leasing versus car buying – iLease explains

Car leasing versus car buying

Are you unsure how leasing works? Would you like to know more? Is there a difference between leasing a car and buying a car? You have come to the right place if you are asking these questions.

Buying a car can be one of the biggest expenses of your life, especially if it is a brand new one. It is usually second in line to buying a house and this is where leasing a car becomes a viable option. Personal Contract Hire (Car Leasing) is where you rent a car for a fixed amount of time, normally a few years (2-4), at a fixed price that you pay monthly. At the end of the agreement, you simply hand the car back to the company.

The benefits of leasing are as followed:

  • Includes full term Road Fund Licence (RFL)
  • You have the option to include a full maintenance package which provides you with worry-free driving
  • You don’t have to worry about selling the car at the end of the contract
  • Static monthly payments, just like a mobile phone contract
  • Brand new cars at affordable monthly payments
  • Manufacturer warranty included on all new cars resulting in repairs on mechanical failures at no cost
  • You can settle the agreement early, you will be provided with a settlement figure
  • No depreciation risk, the future value sits with the finance provider

The benefits of outright buying are as followed:

  • You own the car until you decide to get a new one
  • Insurance will slowly decrease over time, this is the same with leasing
  • Only 1 payment (Unless financed)
  • No mileage limits
  • Can modify the car

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