Land Rover Defender: Should I Buy or Lease my Next Landrover?
Leasing cars was previously something unaffordable for a lot of households, with lease prices significantly higher than paying for a car outright. There have also been the high ‘balloon’ payments at the end of the lease term to own the car, which has put a lot of people off leasing cars.
We are asked if it is worth buying or leasing Landrovers (and other cars) as there is a lot of conflicting information out there about leasing cars. So, we have gathered some information about leasing and buying your next car.
Brand New Cars
Brand new cars are always going to be more expensive than buying a used or second-hand car; however, this is because everything is top of the range and new. This also means that the depreciation that occurs immediately upon driving off the forecourt is part of what dissuades customers from buying a brand-new car.
Purchasing a second-hand car means you will spend considerably less than some brand-new models of car, due to the depreciation mentioned above. However, the risk with second-hand cars is that you do not know what has happened with that car up to the point of you purchasing it. You also will not know if any repairs have been completed with dealer parts or with lower-quality parts. The type of parts used for repairs will determine how long each of the new parts will last.
If second-hand parts are also used to fix the car, this will be considerably cheaper for you, but the repair could be needed again within a matter of months. Using dealer parts to fix issues that arise with your car will also give you a manufacturer’s warranty on those parts, in addition to the longevity of using new parts. This means that although each repair may cost more, it will usually last longer too.
Buying a new car over a second-hand one should always give you longer, meaning that you will get more for your money. You can also be certain of where the car has been before you receive it and that no second-hand parts have been used on the car.
However, you do not just have to decide between buying a new Land Rover Defender Hard Top or a second-hand model. You can also decide between buying a car at all, or whether or not it is best to lease the car from the outset. Leasing cars has changed considerably in recent years, and with the positive changes that have been made to lease options for cars, the popularity of leasing cars has improved too.
Paying for New Cars
When looking at new cars, you have several options available to you, you can buy the car outright using cash, or you can take out a personal loan to pay for the vehicle and pay interest on the loan amount. Taking out a personal loan will allow you to look at various lenders to get the best interest rate and monthly repayment amount.
You can also buy your car using car finance from the garage you are purchasing the car with; they will offer you a repayment plan, similar to a personal loan. However, the cost of car finance repayments is often higher than a personal loan. One way to keep the monthly car repayment lower is to agree to a higher one-off payment at the end of the repayment period, sometimes referred to as a balloon payment.
Alternatively, you can take the lease option and enter into a medium-term lease contract for a brand-new car. You can choose the length of the lease, although all leases will be for three years. This period has been chosen for most UK car companies as you do not need an MOT to be completed for the first three years after manufacture. At the end of the three-year lease period, you can then return your car and choose the next one you would like for your next lease.
You can choose to keep the same make of car and just upgrade to the latest model, or you can use the lease as a way to change to a completely different car every three years. Whichever is your preference, you can be sure of having a brand new car for each lease period without the worry of the depreciation in value when you want to sell the car.
Benefits of Buying a Car
There are several benefits of buying a car outright:
- If you are able to buy the car outright, you will have no monthly repayment to make.
- If you want to purchase a car using finance or a personal loan you will own the car outright after the finance period has passed.
- If you buy a brand new car in the UK there is no MOT needed for three years after manufacture.
- You are not limited on when you need to change your car if you would prefer to keep it for longer than the three-year period.
Benefits of Leasing a Car
By contrast, you can see the benefits of leasing a car too:
- You can decide on lease repayments that are affordable to you.
- You will be able to hand the car back at the end of the lease period and receive another brand-new car.
- When a car is leased the lease company remains responsible for the car, this means that you will not pay for the services or repairs if needed on the car.
- If you take out a rolling three-year lease for each car you will never have an MOT for any of your cars.
Whether you choose to buy or lease a car will often depend on your personal circumstances, needs, and preferences. It is our opinion that the terms of leasing a car are better now than they have been in the past and therefore we can understand the increase in leases being taken out. If you are still unsure if leasing a car is the right decision for you, we recommend that you investigate the type of lease available to you for more detailed and personal information.