To be honest, buying or leasing a car is pretty much a personal preference, a bit like religion and politics.

In New Zealand, vehicle leasing for commercial reasons is fast becoming the norm, however the general public is lagging behind in the belief that leasing a new vehicle for personal use is a good choice compared to borrowing money to 'own' their own car.

So, how do you figure out if you should buy a new car or lease a new car? However, there are not just the financial comparisons to be made, there is also the emotional aspect. Let's face it, nothing feels as good as the interior smell of a new car and the thrill of driving the latest model!

Obviously, owning and maintaining a vehicle is an expensive past time, no matter if you own, lease or hire.

Let's face it, we would all love to drive around in a new (or near new) car, however the cost of new cars has risen dramatically and car loan interest repayments have increased to almost crippling proportions. Vehicle loans that used to be re-paid in 3 years are now being stretched out to 5 or 6 years to keep the repayments lower, which means that people are 'stuck' with an older car for longer.           

When viewing car expenses, it's important to consider them in light of how long you usually keep a vehicle.

Leasing offers several advantages over buying a new car, including low or no deposit, lower monthly repayments plus tax benefits for commercial operators.

Leasing means you can drive a new car without blowing your monthly budget, however it does mean that you will probably pay more in the long run. Another advantage of leasing a new car is that your maintenance costs should be low as most new cars have an extensive warranty, therefore oil changes and such should be your only motoring expense for at least the first 3 years. Even tyres should last 3 years!

While leasing is the most expensive way to drive a new car (for personal use) in the long run, can you really put a price on the pleasure and fun of driving a brand new car?

Website editor - Rachael de Hek