Once upon a time the options for getting a new car were to either buy it yourself or hope that you were given a company car as part of your job. But today the choice is much more flexible with products that range from the traditional bank loan to novated leases, all aimed at getting you behind the wheel of your vehicle.
In determining what finance product is best for you, you have to decide whether you should lease or buy. The essential difference is that if you buy a car, you own it and it is yours to do with as you please.
Leasing a car means that you are only paying for the use of the car and at the end of the lease term you will hand it back or take out another lease. It is possible to buy the car at the end of the lease period under certain lease products. There are no hard and fast rules as to whether leasing or buying suits people better and should be discussed with an accountant prior to making a decision.
If you use your car for business and private purposes and your employer is willing to include a car as part of your salary package, then leasing is well worth looking at. There can be significant tax advantages especially for cars in the prestige and luxury sectors.
Benefits of leasing:
If you:
Then leasing your vehicles is the best option for you.