Car leasing vs buying

There’s nothing quite like driving away in a new car, but should you lease or buy it? Both options come with their own set of benefits, from lower upfront costs with leasing to full ownership when you buy. But what’s best? We’ll break down the key differences.

What is car leasing?

Car leasing is a way to drive a brand-new car without the long-term commitment of ownership. You’ll pay fixed monthly payments for an extended period in return for using the vehicle.

Most leasing agreements come under Personal Contract Hire (PCH), which is one of the most popular forms of leasing in the UK.

What is buying a car?

Car buying means you purchase the vehicle outright, either with a lump sum payment or through finance. Once paid in full, you own the car. It’s yours to keep, sell, or modify as you wish.

Buying gives you complete freedom and control. There’s no mileage cap, no return date, and no restrictions on how you use the car.

Buying vs leasing comparison

Feature	Leasing	Buying
Ownership	No	Yes
Upfront costs	Lower (usually 3-6 months upfront)	Higher
Monthly payments	Lower	Higher
Flexibility	Fixed term	Own forever or sell anytime
Mileage restrictions	Yes	No
Maintenance	Often included	Paid by owner
Depreciation risk	None	Owner takes the hit

Pros of car leasing

Leasing opens the door to cars you might not consider buying outright. Whether it’s a high-spec SUV or a sporty hatchback, leasing gives you access to brand-new vehicles without the hefty upfront cost.

You can enjoy the latest models, modern tech, and stylish trims while keeping your monthly payments fixed and often lower than if you bought the same car.

1

You pay less up front

When you lease, the initial rental is much cheaper and is usually taken up to two weeks after delivery. The monthly payments are affordable too, with fixed amounts meaning you’ll always know what’s coming up.

3

Drive the latest cars

Leasing allows you to upgrade to a new vehicle every few years, so you’ll always enjoy the latest tech, safety features, and styles.

5

Might never need an MOT

New cars don’t need an MOT until they’re three years old, so if your leasing deal is shorter than that, you may never have to pay for an MOT again.

7

Leasing is simple

You just choose your model, decide on your contract length and apply for finance. Once that’s all sorted, we’ll take care of the rest.

9

No depreciation and selling concerns

Since you don’t own the car, you won’t have to go through the hassle of selling or worrying about depreciation.

2

Tax, breakdown cover, and more included

Road tax and breakdown cover are included in your monthly payments, while your MOT and servicing can be added at an extra cost.

4

Free mainland GB delivery

All cars leased through Nationwide Vehicle Contracts come with free mainland GB delivery, meaning you don’t have to worry about collecting it.

6

Access the latest technology

New cars include modern technology such as voice activation, advanced safety features, and connected mobile apps.

8

Great reliability

You can depend on your new car for the duration of your lease agreement.

10

Maintenance can be included

You have the option to include maintenance and servicing, helping you avoid unexpected repair bills and keeping things simple.

Looking to learn more about car leasing?

Check out our comprehensive car leasing guides, or drop us a call on 0345 811 9595, and we'll be happy to help!

Cons of car leasing

Leasing isn’t for everyone, and there are a few things to think about before agreeing to a contract. If you’d rather own your car or need more flexibility, buying might make more sense.

It’s worth weighing up the drawbacks of leasing, too, like mileage limits and wear and tear policies, to make sure it’s the right choice for you.

1

No ownership

You’ll have to give the car back at the end of your leasing period.

3

Wear and tear is your responsibility

You’ll be expected to return the car in good condition. Damage beyond fair wear and tear can cost you.

5

Doesn’t include insurance

Insurance is not included in your lease contract. You’ll have to arrange this yourself.

2

Mileage limits

If you exceed the mileage set out in your contract, you will have to pay excess mileage charges.

4

Early termination is expensive

Ending a lease early comes with fees.

6

Modifications not allowed

You must return the car as it was. Modifications are off the table.

Pros of buying a car

Leasing suits a lot of drivers, but buying a car can be the better option for some, especially if you’re looking for complete freedom. When you own your car, you can customise it however you like and sell it whenever it suits you.

There’s no contract tying you down, no mileage limits, and any money you make from selling it is yours to keep.

1

You own the car

Once paid for, the car is yours. You can keep it, sell it, or trade it in whenever you like.

3

You can sell it whenever you like

You can sell your car and switch to a new model any time you want.

2

No mileage restrictions

Drive as far as you want and as often as you want. There’s no charge for excess mileage.

4

Potential long-term value

Once you’ve paid off the car, you can enjoy several years without monthly payments, resulting in substantial savings.

Cons of buying a car

Buying a car means taking on all the responsibility that comes with it. From repairs and servicing to depreciation and resale, it’s all on you.

Even if you spread the cost over time, owning a car can work out more expensive than leasing, especially once things start to wear out. And when it’s time to sell, the process isn’t always simple, especially if you’re trying to get the best price back.

1

Higher upfront costs

Deposits and monthly payments can be much higher than with leasing.

3

Maintenance and repairs can add up

Once warranty runs out, you’re responsible for all upkeep, servicing, and maintenance.

5

Expensive cars may be out of budget

Buying a premium car outright or on finance can quickly push you over budget. Leasing gives you access to better cars for less.

2

You bear the brunt of depreciation

New cars lose value from the minute they hit the road. That cost is on you.

4

Selling takes time and effort

Eventually, you’ll have to handle the hassle of reselling or part-exchanging your car.

6

Need to organise road tax, breakdown, and MOT yourself

Servicing, repairs, MOTs, breakdown cover, and road tax all fall on your shoulders. It’s more admin than when leasing.

Mark Smith
Director - Nationwide Vehicle Contracts

Which option is better for you?

Whether you lease or buy your next car comes down to how you want to drive, and what you want from it.

If you like driving the latest models, prefer lower (and fixed) monthly payments, and don’t want the hassle of ownership, leasing could be the smarter choice.

On the other hand, if you’d rather own your car outright, don’t mind covering repairs, and plan to keep it long-term, buying might be the better fit.

Still not sure? Try our Finance Eligibility Checker to see if you qualify for leasing, or explore our latest personal lease deals for inspiration.

Ready to find your next car?

If leasing sounds like the right fit for you, now’s the perfect time to explore our latest car leasing deals. From family-friendly SUVs to sporty head-turners, we’ve got one of the largest selections of lease cars in the UK, all available with flexible terms and free mainland GB delivery.

Lease a car with us today and get the keys to a stress-free driving experience.

Browse Lease Deals Now

Need more help on finding your next lease car? Check out our Car Leasing Guides below:

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