Choosing Your Next Business Car: Is Buying or Leasing Better for Your Wallet?

Choosing a new business car is always exciting. Although there are lots of practicalities to think about, we all look forward to doing a little window shopping in advance, flicking between the webpages of one shiny new vehicle after another. The thought of that new car smell, the gleam of fresh, waxed paint, and the thrill of taking your new motor for a spin is enough to have you daydreaming for days.

Yet not all of your thoughts will be devoted to these fantasies. Although we would all like to buy the flashiest new model, you have to be realistic, and this means considering how far your budget will actually stretch. In part, this will depend upon how you choose to obtain your car; either through leasing or through buying.

Business Car

Here, we offer a brief guide to help you decide which of the two would be best for your wallet…

The Financial Benefits of Buying 

Buying from a company like Shelbourne Motors is the traditional ownership option for most people, and it offers many benefits to those who choose to go down this path. First amongst these is actual possession. Cars can be expensive, so a lot of people like to know that the money they put into them makes the vehicle physically theirs. The reason for this is simple: what you own you can sell. Thus, if you need to release the funds tied up in your motor further down the line, you always have the option to do this.

A second benefit, for some, is that car buying need only involve one lump sum payment. Although many dealerships will offer you the chance to pay in monthly instalments, those who choose the more traditional option of settling their bill upfront will thereafter own the vehicle, with no further obligation to lay out money. This means that you will not be liable for additional interest payments, which is good news for your wallet.

Additionally, you have the option of selling your car when you next choose to upgrade it, helping to provide the money needed to purchase your next vehicle.

The Financial Benefits of Leasing 

Buying works for a lot of people, but before you give it a go, you should also consider the possibility of leasing a motor. This has a number of financial benefits that you ought to know about, so it simply comes down to which of these two options suits you better.

The first point to be aware of is that leasing allows you to spread the cost of car ownership over a prolonged period of time. Although you will never own the car, you will not have to advance a large sum of money outright, and can instead pay a monthly fee for the duration of the leasing term.

In addition, many of your maintenance costs will be covered by the company that you lease from, meaning that such cars are often much cheaper and more economical to keep.

If you’re considering buying your next vehicle, bear these points in mind today to help you determine which of these options would be better for you.

About Tina Roth

Get to Know Me Better. Hi, I'm TINA! I am a financial planner, blogger, and freelance writer and digital marketing consultant. The idea of starting a finance blog has been hitting me for long; I took it seriously after falling into a spiral of finance debacles and recovering from it. Here I write about personal finance and money management tips.

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