When deciding to purchase a car in the UK, the question arises of how to finance it. Two popular options are renting and buying. Each of these approaches has specific advantages and financial considerations. In this article, let’s explore the pros and cons of renting and buying a car in the UK finance context.
Rent a car
Renting a car, also known as leasing, essentially involves renting the car for a set period of time. During this period, you pay a fixed monthly amount to enjoy the vehicle, without having to worry about final ownership. Some of the benefits of leasing include:
Lower initial cost
By opting for leasing, the initial cost is usually lower compared to buying a car. This is because you don’t have to make a big initial outlay to purchase the vehicle.
Lower monthly payments
Leasing also offers lower analytical payments compared to a purchase finance. This can be accepted for those who want a new and updated car without compromising a large part of their monthly income.
No problems with resale
When the lease expires, you can simply return the vehicle to the leasing company without worrying about resale. This alleviates the stress associated with selling the used car.
Buy a car
Buying a car involves owning it and accumulating equity in the vehicle by making monthly payments if you choose to finance the purchase. Some of the benefits of purchasing include:
Car Ownership
When you buy a car, you become the owner of the vehicle. That means you have the right to make changes, customize it to your ears and enjoy all the benefits of ownership.
Total Control over Mileage
Unlike leasing, where there are often restrictions on mileage, buying a car gives you the freedom to drive the vehicle for the number of miles you desire without incurring financial transfers.
Firm Idea of Costs
When buying a car, you have a clear idea of the long-term associated costs. Once payments are completed, the car becomes your additional financial obligations on top of regular maintenance and insurance costs.
Long term financial decision
While leasing can offer immediate benefits, many experts believe that buying a car is a better financial decision in the long run. When you buy, you accumulate equity in the vehicle, which can help offset the higher initial cost. Also, once the payments are completed, you can continue to enjoy the car at no additional cost, except for maintenance and insurance costs.