Comparing Buying, Leasing or PCP for Acquiring a Car

When it comes to acquiring a new car, there are many different financing options available, whether it is for personal use or as a company vehicle. The first thing most people will do is search online for a brand new or second-hand vehicle to buy outright, but there are other options available. Here we compare the advantages and disadvantages of buying, leasing and taking out a personal contract purchase when getting a fresh vehicle. 

Buying

Advantages: Buying a new car from Robins & Day means you get a vehicle with the latest technology, safety standards and that shouldn’t have any problems. While opting to buy a second-hand model means you will also own the vehicle but also get it for a much cheaper price. With either choice, you can also recoup some of the value if you sell it on later.   

Disadvantages: The main disadvantage of buying a car is that it will depreciate in value, especially with a brand new car. If you go for a new one it will only have the latest number plate for six months as well, while buying a used car it could encounter more mechanical problems.

Leasing

Advantages: With leasing you pay a monthly fee to use a brand new car. This makes it easy to budget as you know exactly what monthly costs will be. Plus, breakdown and maintenance cover are usually included in the monthly price and you do not lose out as the vehicle depreciates in value.

Disadvantages: You are tied into a contract with a lease that you can only get out of by paying it off or suffering early termination charges. Despite paying monthly you never own the car either and in some cases it can cost you more than using a loan to buy a car in the first place.

Personal Contract Purchase

Advantages: PCP is similar to car leasing, in that a monthly payment is made for a fixed amount of time to drive a certain car. Only a small deposit is required and unlike with a lease, at the end of a PCP you have the option to buy and own the vehicle.

Disadvantages: The car is legally owned by the finance company until it has been paid off, so you cannot customise it until then. You also have an annual mileage that must be stayed within, that, along with cancelling the contract, will impose a fine.

Consider which of these options is best for your personal or professional vehicle situation