Comparing Leasing to Other Purchase Options

By Lauren Bagnall
23-03-2021
Comparing Leasing to Other Purchase Options

In today's modern setting, there's more than one way to purchase and lease a vehicle. If you don't have the funds to pay for a brand new car upfront, finance and leasing options come in handy to help you spread the cost. But which one is best? Here at MW vehicle contracts (MWVC), we provide deals on van, pickup and car leasing in Leicester and across the country, and we believe it's the most cost effective way to drive a brand new vehicle today.

We provide a range of car, van and pickup deals for both personal and business lease, delivering all vehicles for free to locations across mainland UK. Following the payment of an initial rental, your monthly rentals and deal is tailored around your budget and preferences, allowing you to drive away with the best deal possible. Read our latest article below to discover why leasing is the best way to run a vehicle today.

Buying a Vehicle

This is probably the most expensive option, as you need to find a large sum of money quickly. Some people believe that buying a car upfront is the best option; the car is completely yours, you're not tied to a contract and you don't have to worry about exceeding your mileage. If you're looking to drive a brand new vehicle, however, it can leave a huge hole in your finances, and even if you do have the funds, you may not have any left over for a rainy day. Also, the vehicle will depreciate over time, meaning you won't get a lot of money if you decide to sell it on. Think of it like buying a house; if you knew the house was going to lose value over the years, would you buy or rent? The answer is always rent. Therefore, why would you spend a large amount of money on something you know will only be worth a fraction of the price in years to come?

By opting to lease a vehicle, you can drive the latest model of your favourite brand for a fraction of the price of buying upfront. There are no expectations to sign another contract once the current one is up; you just hand the car back over, and that's that. If you do wish to sign another contract, you get another brand new vehicle, and the cycle continues. Here at MWVC, we lease vans, cars and pickups on great deals suited to your budget. The double cab Ford Ranger is currently on special offer at £236.08, perfect for anyone looking for a brand new pickup truck.

Personal Contract Purchase (PCP)

A popular option amongst car drivers, PCP is similar to leasing as it involves signing a contract, although PCP allows you to finance older vehicles too. You pay for the vehicle in monthly instalments, and at the end of the contract, you have the option to buy the vehicle whilst also paying a "guaranteed future value." You also have the option to own the car at the end, but if you choose not to hand it back over, you must consider depreciation.

With leasing, depreciation isn't a concern. You just hand the keys back at the end of your contract, and if you wish, you can sign a whole new contract and once again drive a brand new vehicle. One of the biggest downsides to PCP is that, not only do you pay for the vehicle monthly, you also pay interest, whereas when you lease, you pay exactly what is agreed upon between you and the sales team. Here at MWVC, we will always be upfront with you concerning cost and contract, and we will keep in contact with you throughout your contract to ensure your satisfaction. You can view our current special offers on a range of brand new cars, vans and pickups here.

Hire Purchase (HP)

Hire purchase, like leasing and PCP is paid for in monthly instalments. Following an initial payment, you will then pay off the entire cost of the vehicle in monthly payments, and at the end, the vehicle will be yours. Because of this, the monthly payments will be more expensive, and you won't be able to sell the car until the finance is settled. This can take time, and the vehicle will have depreciated by then.

By leasing your next vehicle with MWVC, you can drive the latest model for a set price, with no obligation to pay more than you should. Once your contract is up, you can drive around in the next latest model, allowing you to pick and choose the absolute best car, van or pickup for you. Our van lease deals are perfect for businesses who need commercial vehicles, and the new Citroen Dispatch is perfect for transporting goods and equipment for trading professions.

Here at MWVC, we're fully dedicated to customer satisfaction and providing you with the best vehicle leasing deal suited to you. To speak to a member of our friendly team today, please get in contact by calling 0116 259 9548.