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To buy or not to buy – Is leasing a car the new way get your dream car for YOU?

Last Updated: 2nd Feb 2018
To buy or not to buy – Is leasing a car the new way get your dream car for YOU?

2nd February 2018

We feel that it’s completely a personal choice when it comes down to leasing or buying that new car. It’s totally dependent on your personal circumstances or preference, or whether it’s financially viable for you as an individual. Here’s a few questions we think you should ask yourself when thinking about buying or leasing.

Which payment option will work better for you? – Do you have a lump sum of cash ready and waiting to spend on a new car? Would you prefer to get a new car without having to pay everything up front, and pay it off over time? Would you rather not fully invest and simply ‘rent’ a car, so in a few years you can get another one, no strings attached? There are options and pros and cons for each of these scenarios.

  • TO BUY – If you’d rather purchase something outright that is your own, and are one of those people that don’t like to pay things off or have ongoing payments; you’d rather save up, and buy something within your means that will last for years to come – then buying may be the right choice for you.
  • PCH – If you don’t have savings but want to drive a new car, but you also don’t want the hassle of having to own or maintain it, or worry about the depreciation connected with car ownership, then PHP may be the right route to go. You get all the benefits of a new car, you pay a monthly ‘rental’ or lease fee, and at the end of the term (usually 3 years) you simply return the vehicle at the end of your contract. No ties or strings attached or anything to worry about, you’re free to then make another choice. You can then either get another brand new car on lease, you may be now be in a better position to buy, or you could hire purchase – the freedom and choice is yours depending on your personal circumstances.
  • PCP – If you want the benefits of not paying a large lump sum upfront, but you’d eventually like to own the car that you’re paying for – then this is the option for you. You get the best of both worlds, you aren’t just renting and giving it back at the end of the term, you’re paying it off like a loan or mortgage and in the end, it’s yours. People like this option if they want to feel their monthly payments have equated to something.

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How important is having a brand new car to you? – This is an important question and will really help with whether buying or leasing is the way forward for you. Do you want to buy something and own and maintain it for the next 5, 10, 15 years? Do you want to look after a car that was brand new, but will of course become outdated over time? This sounds negative but it’s not, some people for instance love a classic car, and love to look after their purchase and have the freedom to call something theirs and no one else’s.  They want to grow with their car and feel a connection with it, because it’s theirs and they feel at one with it. Or would you rather drive the most up to date cars on the market, benefit from having all the newest car gadgets that are being invented like parking cameras and build in sat navs, auto lights and wipers and all the other features that are constantly being developed. Newer cars are getting cheaper and cheaper to run with lower emissions, better fuel consumption and lower road taxes. Would you prefer to update your car to the newest version on the market every few years, or take ownership of one from the start and nurture and cherish your big purchase from your savings?

How much do you drive? – Many leasing terms come with agreed mileage so again this is somewhat important to note when making this decision. Do you live spontaneously and want to road trip to France to play golf in the summer? Do you want the freedom to go anywhere you like, and not feel restrained by how many miles you can drive? Then maybe buying is the option for you. If you own it, you can literally take it and drive it anywhere on this planet if you wish. If you are looking for a car to simply commute, take the little ones to school and drive a similar, average amount of miles per year – then leasing would work well for you.

How do you feel about vehicle maintenance? – You’ve heard of technophobes right? The people who hate / fear new technology and things they cannot fix themselves. We feel this can also be related to how people feel about cars. Some people understand that cars can go wrong, they may have a basic or advanced understanding of cars and are happy to get it fixed (or fix it themselves) if and when something goes wrong. It’s inevitable as a car ages that, down the line, things will need replacing. The question is, are you geared up to deal with this? Do you mind spending the time and money on it to make it right? If so, great, buying would be a fine option for you. Others, like technophobes, hate having to deal with the maintenance of a car. They don’t know what that sound might be, they don’t know why the gears feel funny, and they don’t have a clue why all of a sudden the radio won’t work. They also don’t have the time and patience to deal with it, they would prefer to simply call the leasing company and ask them to fix it. If this sounds like you, the leasing would be best as many cars can come fully maintained, meaning if anything goes wrong within you lease, it’s all sorted for you.

How’s your credit – It’s extremely important to remember that if you’d prefer to lease purchase or lease hire- you will have to have a credit check. Now we aren’t saying you have to have perfect credit, in fact, Hippo are renowned for dealing with people from all financial backgrounds, especially bad credit. We work with you and your financial circumstances and aim to get you approved when many other leasing companies can’t. If you are really unable to get credit right now though, then buying would be the option for you until you can lease.


Would you prefer just one monthly payment foreverything? – when buying a car, you have to also think about road tax, insurance and breakdown cover. For many, this isn’t a problem; you’ve owned cars and property for years and may already have all these things in place. If so, no problem, buying will be good for you. For others, like a new driver for instance, this can all be slightly overwhelming and time consuming having to arrange all these things separately. If this sounds like you, then leasing, with Hippo particularly, could be the way to go. We have hundreds of deals that include insurance, warranty, road tax and roadside, so you literally just pay one monthly payment and you’re safe in the knowledge that all is sorted on your behalf.

We feel there is no right or wrong answer when asking whether it’s best to buy or lease a car. It is totally down to you and your personal circumstances, your credit, your monthly cash flow, your driving preferences and how much time and energy you have for it.

If leasing is the way forward for you, give us a call on 01254 956666 or head to our website to check out our latest deals.  

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