It’s the classic dilemma that faces every single auto-consumer on the market: Pay money upfront or forego the ownership and pay monthly settlements instead? Obtain or lease for a new set of wheels?

As is the case with every other widespread dilemma, there’s no slam-dunk answer. Every choice has its own advantages and drawbacks, and it all depends on a set of monetary and personal considerations.

Very first, your finances. Affordability is clearly key, and you’ll want to ask the question of how stable is your job and how healthy is your general financial scenario. The short-term monthly-cost of leasing is significantly lower than the monthly payments when purchasing: you only pay for ‘the portion’ of the vehicle’s cost that you use up in the course of the time you drive it. For those who have a great deal of money upfront, then you may opt to pay the down payment, sales taxes - in cash or rolled into a loan - and the interest rate determined by your loan corporation. Buying successfully gives you ownership of the vehicle and that feeling of ‘free driving’ that goes on providing transportation. If, say, you want to get into luxury models but can’t afford the upfront money of purchasing the vehicle than you are a great candidate for leasing. Unlike getting, it gives you the option of not having to fork out the down payment upfront, leaving you to pay a lower dollars factor which is normally similar to the interest rate on a financing loan. Having said that, these benefits have a price: terminating a lease early or defaulting on your monthly lease payments will result in stiff financial penalties and can ruin your credit. You should make certain you carve out the monthly lease payment inside your spending budget for the foreseeable future, at least for the duration of the lease.

Besides the financial aspect, making a purchase or lease decision depends on your own certain way of life options and preferences. Consider what the car means to you: are you the sort of person to bond with the vehicle or would you rather have the excitement of some thing new? Should you want to drive a car for more than fives years, negotiate carefully and obtain the car you like. If, on the other hand, you do not like the notion of ownership and prefer to drive a new car each and every two to 3 years then it is best to lease. Next, factor your transportation needs: How many miles do you drive a year? How properly do you preserve your cars? Should you answer is: ‘I drive 40,000 miles a year and I do not genuinely care a lot about my cars as I don’t mind dealing with repair bills’, then you are most likely better off getting. Leasing is based on the assumption of limited-mileage, generally no a lot more than 12,000 to 15,000 miles a year, and wear-and-tear considerations. Unless you can keep within the prescribed mileage limits and maintain the auto in a great condition at the end of your lease, you may possibly incur hefty end-of-lease costs.

The InterCars.co.uk site gives information on uk cars and pcp plans.