Leasing a Car Vs Buying a Car

What’s better – leasing a car or buying a car? It’s a common dilemma that people face when looking to buy a car in Australia, and one that doesn’t necessarily have a simple answer. Whether you lease a car or buy a car is dependent on your personal situation and preferences. Each has their pros and cons, meaning that you need to determine which one suits you best when heading into the negotiation process.

Lease Car Options

When you lease a car you only have to pay a part of the car’s total cost. This is considered the part that you ‘use’ during the period that you are driving the vehicle. When choosing to lease a car you will:

• Not have to make a down payment
• Pay sales tax only on your monthly repayments
• Pay a financial rate
• Possibly have to pay a security deposit

At the end of the lease you have the option to return the car or purchase it for its depreciated resale amount. Novated leases are a common way to lease a car.

Buying a Car

When you buy a car, you pay for the entire cost of the vehicle either upfront or as a part of a loan. Monthly payments tend to be higher when you buy a car. Once you have paid off your loan, you have complete ownership of the car and can sell it for its resale value or keep it and continue to use it.

When it comes to car leasing and financing, Automotive Lease Packaging are the ones to turn to. Whether you are looking to a lease a car or buy a car in Australia, our expert team will be able to assist. Enquire more on 1300 309 343.