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If you are planning on getting a new car in the near future, there is one question that you should consider – ‘are you going to buy or lease a car?’ There is no right or wrong answer to that question and whether you do decide to buy or finance your car with a BMW lease really comes down to you as an individual and your own circumstances.
In the following article we will look at the main differences between leasing and buying and a helpful guide to figuring out whether leasing or buying is the best option for you.
Leasing and Buying Are Different
Although they may sound similar, buying and leasing are very different. For instance, when you buy a car, you pay the full cost for it. Whereas, when you lease a car, you only pay a part of the cost – the part that you use up while you are leasing it.
This is why you will find that monthly payments when you lease a car are cheaper compared to the monthly payments you may have to make when you buy a car. In the short term, leasing is definitely the cheaper option of the two. However, with the majority of leasing agreements you never own your car, in the same way that you would if you purchased it. Therefore if you are interested in having the same car for a long period of time, it may be worth buying your next vehicle.
It is worth keeping in mind though that some leasing agreements allow you to own the car when the leasing period is over – the BMW Select and BMW Hire Purchase plans for instance.
Should You Buy Or Lease Your New Car?
To help you figure out whether you should buy or lease your next car, we have given you some of the reasons why you should consider either option.
The following are reasons why you should buy a car –
If you don’t mind paying higher monthly payments, when you are taking out a loan or some other kind of finance
If you prefer to increase the resale or trade-in value
If you prefer the idea of owning a car
If you don’t mind paying for car repairs once your car’s warranty period is over
If you prefer to drive the same car for a long period of time to help spread the cost.
The following are reasons why you should lease a car –
If you enjoy driving the latest model and like having the option of replacing it within 2 to 3 years.
If you want to pay lower monthly payments or the chance to drive a more upmarket vehicle
If you like having a car that is always covered and protected by a warranty
If you like driving a car with all the latest safety upgrades and features
If you are not a fan of selling and trading used cars
If you don’t want to lose any money because of high depreciation costs