If you're in the market for a new car, think carefully about how you'll finance this. Is leasing or buying better?
Do you want to pay the full cost of a new car every two, three or four years, and then have to sell or trade in the vehicle?
or do you want to simply pay for the time you use the car, while it's in its best condition and under warranty, and then have the option of driving a brand new car again? And save yourself a great deal of money?
Car leasing vs buying: example of savings you can make on a new car
3 years, 0% APR through Vauxhall Finance. All prices include VAT at 20%
Initial payment: £720
Vauxhall deposit contribution: £750
Total Initial Payment: £1470
36 monthly payments of £325.14 = £11,705.04
Total payable £13,175.04
Annual cost: £4,391.68 excluding annual Road Fund Licence
Monthly cost: £337.82
Calculated using data current at 11 December 2013 from Vauxhall web site
Future value estimate: £4,032.60
The estimated future value of a 3-year old Vauxhall Corsa Hatchback 1.2 ecoflex exclusiv 5dr with 30,000 miles is £4,032.60. (Data from Network Leaseplan as at 11 December 2013)
So you would have paid £13,175 for a vehicle that is now worth £4,000 if you sell it, and perhaps worth less as a trade-in for a new vehicle.
As opposed to saving £4,042.93, and having the choice of a brand new car?
In the UK, we recommend leasing over buying for your next new car
The alternative to buying is that, with car leasing, at the end of the contract, you can take your choice of another entirely new vehicle, which is likely to have better safety features, better fuel economy, include the latest gadgets and feature the latest design, and again save thousands over the cost of buying outright.
Plus, there is none of the hassle of trading in a car or selling privately. You can also choose a vehicle that suits your current needs - whether it's something a bit sporty, something with more room for a growing family, or as a second car for other family members.
Call to speak to an FVL expert advisor on 0800 298 2030 today
2 Baillieston Road,
First Vehicle Leasing is authorised and regulated by the Financial Conduct Authority.
Firm Reference Number 674464. Not all types of business we undertake is authorised and regulated by the Financial Conduct Authority.
Failure to maintain payments may result in the vehicle being withdrawn. First Vehicle Leasing is a credit broker and works with a panel of carefully selected lenders.
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All car offers are based on Contract Hire, 10k miles per annum, with stated number of rentals in advance followed by 23 rentals (2 yr), 35 rentals (3 yr) or 47 rentals (4 yr) as appropriate. All rentals exclude V.A.T., unless otherwise indicated. All images are for illustration purposes only.