The simple answer: compare the total cost between buying and leasing, over a set period of time. Total up the number of lease payments, plus any upfront charges, plus other expenses vs the total of loan payments or cash price paid and other expenses over the same period, less the anticipated resale price.
However, the full answer to this question depends entirely on your personal circumstances: your financial situation, your family car requirements, and your priorities. It also depends on a “deal” you can get. There’s no clear-cut rule as to which option is best, as there are benefits and drawbacks to both leasing and buying. There is no single one size fits all answer to this question. Sometimes there is more to leasing vs buying than money.
There are three main options:
- – purchasing outright
- – personal contract purchase (PCP)
- – personal contract hire (PCH)
Buying car outright
Personal Contract Purchase (PCP)
PCP finance is something in between purchasing the car outright and leasing it. It’s perfectly suitable if you like to change your vehicle regularly, but prefer not to commit to buying it from day one. Firstly you choose the deposit you’d like to pay and your term, usually between 24 to 48 months.
At the end of the term, you can part-exchange your vehicle for a new one (using any equity in the car as deposit), or pay the final payment to either keep your vehicle or return it as a final settlement.
Personal Contract Hire (PCH)
To get you started, to see what family car lease deals can be had please visit Ling’s Cars.