It’s the New Year, and you may be feeling ready to upgrade to a new set of wheels, but before you do so there are many aspects to consider to make sure you’re getting the most for your money.
What’s more cost effective in the long run: outright buying, finance, or leasing?
Instinct would lead many to believe that renting a motor would be more expensive over a long period of time rather than paying for a car outright, but you have to take into account the depreciation of the vehicle over time. Typically a new car will lose between 50 and 60 per cent of its value after three years! These are 2017’s fastest depreciating cars.
We’ve created a helpful cost comparison for buying, leasing and financing a new Vauxhall Astra, and how much you would spend after three years.
It’s clear that leasing a new car in many cases can be much more cost-efficient over time. Choosing to lease could save you thousands in the long run! But be responsible with your finances, and make sure you can afford to pay the monthly outgoings towards a leased car.
- Do your research! Some cars depreciate slower than others so you may be able to re-sell your car at a higher cost than others.
- Buying a used car may also be the best option to minimise long-term costs.
- When shopping for a leased car, check if the servicing costs like an MOT or car tax is included in the cost to save money.
- Use websites like Auto Trader and What Car? to see comprehensive reviews and compare prices of different cars