If it appreciates, buy it. If it depreciates, lease it.

I was recently asked by a potential client to explain the cost differences between buying a new car v leasing a car.

I provided key information data on the vehicle of their choice, this data came from Fleet News Fleet cost website, which gives information on costs per mile for the following categories,

·        Depreciation over 3 years,

·        Service, Maintenance and Repair costs over 3 years.

According to Oil Baron Paul Getty, “If it appreciates, buy it. If it depreciates, lease it”

Using this analogy, I was able to show the customer that leasing the car with a Full Maintenance contract, would cost less money than buying the car with Cash, and selling the car with 30,000 miles on the speedometer on its 3rd birthday.

Today, I have provided similar information on three of the five best selling cars in the UK, to show everyone the benefit of Leasing, and the overall savings than can be achieved. The cars have been in the UK top five in October 2017, according to the Society of Motor Manufacturers and Traders (SMMT).

Without advertising the actual vehicle models, they are; Column 1; a small 3 door Hot Hatchback, Column 2; a Prestige brand 3 door hatchback, and Column 3; a 5 door two wheel drive SUV vehicle.

In all three examples, it is less expensive to have a lease vehicle, fully maintained, including replacement of worn or accident damaged tyres throughout the 3 years, than the depreciation cost alone over the same period.

With vehicle technology improving year on year, Leasing really is the effective way to benefit from the latest technology, keep up to date, and save on those potentially expensive repairs once a vehicle is out of warranty.

Give me a call to discuss your vehicle requirements.

I listen, I advise, and I deliver, on a deal that will be cost effective to your Business or Family.