Leasing used car vs Buying an electric Car - which one is better?
When it comes to purchasing a car, the age-old question remains: is it better to lease used car or buy new car? There are several factors to consider before making a decision. Let's take a closer look at the pros and cons of each option.
Leasing an Electric Car
Electric cars are becoming increasingly popular due to their environmentally friendly nature, but is leasing one a good idea? Leasing can be a cost-effective way to drive a brand new EV, as the depreciation risk lies with the leasing provider rather than the buyer. buying an electric car outright can be risky due to the potential for the value to decrease within a few years.
When to Lease Last Year's Model
If you're looking to save money on a lease, consider leasing last year's model during a major model change, waiting for better bargaining power at the end of a month or year, or shopping around during a holiday sale.
Cons of Leasing a Car
While leasing a car may seem like a good option for some, it's important to consider the downsides. Leasing can end up costing you more in the long run, as you'll be paying for the depreciation of the car without building any equity. Additionally, you may face excessive wear-and-tear charges or hefty fees for terminating the lease early.
Tax Deductions for Electric Cars
If you're considering buying or leasing an electric car, it's worth noting that cars with CO2 emissions of less than 50g/km are eligible for 100% first-year capital allowances. This means that you can deduct the full cost from your pre-tax profits.
Cost of Leasing an Electric Car
While electric cars are typically more expensive than their petrol or diesel counterparts, leasing can be the cheapest way to get behind the wheel of a new EV. Additionally, electric cars are cheaper to run in the long term, which can result in further savings.
Is Leasing a used Car Worth It?
Leasing a used car can be a good option for those who want to keep their monthly payments low.
it's important to remember that you won't be building equity in the car and may face additional fees or charges at the end of the lease.
Best Time to Lease a Car
If you're looking to lease a car, the best time to do so is between July and October when most new models are introduced. Additionally, long holiday weekends such as President's Day, Memorial Day, July 4th, Labor Day, and Thanksgiving may offer special dealership incentives.
Tips for Negotiating a Lease Deal
When negotiating a lease deal, it's important to focus on the price of the car rather than the monthly payments. Avoid disclosing what monthly payments you can afford and consider bringing someone with experience in car negotiations to assist you.