Should You Buy or Lease Your Next Car? Pros & Cons Explained

There have never been as many options as there are right now for purchasing a new car. The good news is that you’ll find multiple payment options here at Eden, and if you’d like to find out more, get in touch with a member of the team.

Buying a car outright remains a key way of getting behind the wheel of a new car, but, at the other end of the spectrum, is leasing, which allows for a lot of flexibility. Here, we’re going to check out the positives and negatives of both options.

Buying outright - positives

There are many positives to buying a car outright with cash. For one, when you get the keys, the car is yours outright. From there, you can sell it if you need to, or make any changes to it that you’d like. You also won’t have to worry about making regular payments each month - as you have to with financing - and you’ll have a little extra flexibility by not being tied into a contract.

There’s another great plus-point to buying with cash - variety. You can choose from the wide range of cars that we have on offer here at Eden and take one home today.

Buying outright - negatives

There are some negatives when buying outright, of course. For one, you’ll be putting quite a large lump sum into a vehicle and losing depreciation. This is money that could be working harder elsewhere or being used for other projects instead.

In addition, you won’t generate any positive credit when buying with cash. When financing, routine payments help to contribute towards your credit score, so when buying outright, you’re not getting this.

Leasing - positives

One of the best things about leasing is the flexibility it gives you to change vehicles. Because lease agreements span between two and five years - with most people opting for around three - you’ll be able to swap into a car more often than you might do with other payment methods.

Leasing also makes it easier to budget, since you’ll be making standard monthly payments that are simple to track. You can determine how much you’ll be spending overall. Plus, many leasing agreements bundle in servicing and other associated costs, so you won’t need to worry about those in addition to your primary payments.

Leasing - negatives

There are some other aspects to remember when leasing, of course. If you’ve got bad credit, then you might struggle to get a leasing agreement - though our team here at Eden will be able to advise you on what to do if this applies to you. If you fail to make the repayments, then the vehicle could be repossessed, too.

All leasing agreements come with a mileage limit, and going over this can be expensive due to penalties. It’s why being accurate with your expected mileage is so important, and, again, this is something that we can help out with here at Eden.

You can also be hit with penalties if you damage the car. This can add a considerable amount to your leasing bill at the end, so it’s worth considering your options in this area.

However, whether you want to buy a car outright or go for leasing, we’re always happy to help here at Eden. With a range of both used and new vehicles to check out there’s set to be a car for you, so check out our current stock and get in touch today.