Study: Car Leasing Easier On The Pocket Than Buying
London, England, United Kingdom (AHN) – A price comparison site advised small business owners to lease instead of buy new cars to cut costs. But the advice is primarily for those who trade in their older models for new units every four or five years.
According to FinanceAcar.co.uk’s comparison, it would cost $210 (140 pounds) a month less to lease a BMW 3-Series on a four-year term compared to purchase a Ford compact at a 9.9 percent loan rate over four years.
The website pointed out business owners avoid paying value added tax on leased cars used only for work, while vehicles that are also used for personal trips get only a 50 percent cut in their VAT.
Mark Peatey, co-founder of FinanceAcar, stressed leasing is not for everyone. It would only work for those who change their car every four or five years, but buying a car is still the better option for those who want to drive the same unit for 10 to 15 years.
The website added it is impossible to pinpoint a finance option as better than others because the better choice is dependent on the circumstances of each case and type of leave available.
About two million cars are sold yearly in the U.S., 50 percent of these are purchased by individuals, 40 percent by fleet operators and 10 percent by businesses.
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