Updated over 5 years ago on . Most recent reply
Buying or leasing a car?
A little bit about myself, my name is Alex, I’m a 22 year old aspiring property investor originally from the UK. For the last 3 years I have been working overseas soon to return home, now like most people who have made the decision to chase the idea of real estate investment, I can’t wait to dive in and get started and this is where my question comes from.
I will be returning home with a nice amount of money saved with the intention of investing it, however I will also need to get myself a car for obvious reasons.
now my big dilemma is which route I should take to allow me the best start to my investing career, the way I see it these are my options.
The numbers I will use are purely an example.
Option A: I buy an older car outright for £5000 with no ongoing costs
Option B: I pay a small deposit of £2000 on a new car and finance the rest at £300 a month for 48 months, owning the asset at the end.
Option C: Lease a car for £350 a month with no upfront payment, and give the car back after 48 months and repeat.
I’ve given each option some thought and each have there pros and cons, I wondered if somebody with more investment experience could shed some light on the situation.
Many Thanks in advance,
Alex