Benefits of Leasing a New Audi Versus Buying One
If you dream of driving a new Audi, you’ve got great taste!
Renowned for high-performance engineering, modern designs, and luxurious interiors, the German marque consistently ranks as the UK’s leading premium car brand.
Before you can sit down behind the wheel of your new Audi though, there’s an important decision to make – are you going to lease it or buy it?
The right option for you depends largely on your lifestyle and budget.
In this article, we’ll explore the key benefits of leasing an Audi versus buying one, comparing everything from upfront costs and monthly payments to depreciation and taxes, so you can decide which option is right for you.
Leasing versus buying an Audi: What’s the difference?
How does it work?
If you’ve set your sights on an Audi for your next car, there are two main routes to get behind the wheel: leasing or buying.
Buying
With the price of models like the new Audi Q5 SUV starting at £53,000, buying represents a significant financial commitment, and few people can buy outright. Instead, most people finance the purchase using Personal Contract Purchase (PCP), a type of car finance. The main advantage of buying is that once you’ve paid off the loan, you’ll own a valuable asset.
Leasing
On the other hand, leasing through a Personal Contract Hire (PCH) lease or Business Contract Hire (BCH) lease is a more affordable option. If you go down this route, you pay a leasing company a fixed monthly fee to lease the car from them over an agreed period then, at the end of the lease, you hand it back. You won’t pay as much, but you’ll never own the car either.
Upfront costs
One of the most important differences between leasing versus buying an Audi is the amount you’re required to pay upfront.
Buying usually requires you to put down a significantly higher upfront payment than leasing.
Buying
When buying a new Audi, you will usually be asked to pay 10-20% of the vehicle’s value upfront.
Leasing
When leasing, the initial upfront fee is flexible and equal to either three, six, or nine monthly payments, which usually works out at significantly less than buying.
Monthly payments
Unless you have the cash available to buy a new Audi outright, both options will require you to make monthly payments. If you take out a loan to buy a new Audi on finance, the monthly payments are usually considerably higher than they would be if you were leasing the same car.
Let’s find out why.
Buying
When you buy a car on finance, your monthly payments go towards paying off the full value of the car (minus your deposit).
Leasing
In comparison, when you lease a car, you are paying to borrow the car from the leasing company for a fixed period. Your monthly payments are designed to cover the car’s depreciation during your lease term, rather than the car’s full value.
One of the main benefits of leasing an Audi rather than buying one is that the monthly payments are usually lower and fixed when you lease. This means less money tied up in a depreciating asset and more financial flexibility.
Flexibility
When it comes to flexibility, leasing is hands-down the winner.
Buying
If you decide to buy a new Audi, you’re making a long-term commitment – so you better be sure it’s the right car for you!
Leasing
Most leasing agreements only last two to four years (the choice is yours), then, at the end of the lease, you can either walk away or upgrade to a new model.
It’s easy to see why leasing is such a popular option among car enthusiasts. It gives you the freedom to upgrade to a new car every few years and experience the latest features, designs, and cutting-edge in-car technology as they’re released.
Depreciation and resale
Depreciation is the decrease in a car’s value over time. It can cause significant financial loss and is a worry for all car owners. Every car’s value depreciates, but the steepest drop typically happens in the first few years.
Buying
If you buy an Audi, it’s you who will take the hit with depreciation. You could find that when you come to sell or trade in the car, you get less than you expected.
Leasing
However, when you lease a car, it’s the leasing company that shoulders the cost of depreciation, not you. At the end of your lease agreement, you simply hand the car back to the leasing company; no need to worry about reselling it.
Leasing allows you to enjoy the advantages of driving a brand-new, high-tech car without having to worry about the financial loss caused by depreciation.
Tax and insurance
No matter whether you’re buying or leasing, you’ll need to make sure that your new Audi is taxed and insured before you hit the road. Let’s look at who is responsible for what and the associated costs when buying versus leasing a new Audi.
Buying
When buying a new car, many dealers will incorporate the first year’s tax into the price. After that first year, you’ll be responsible for buying road tax. You’ll also need to sort out car insurance and breakdown cover independently.
Leasing
When you lease an Audi from Let’sTalk Leasing, road tax is included in your rental price, but you’re responsible for arranging insurance. You’ll also need to arrange breakdown cover, unless you add our maintenance package to your rental agreement – our maintenance package includes comprehensive breakdown cover and roadside assistance.
If you plan to lease an Audi for business rather than personal use, then you may be eligible for significant tax benefits, including VAT reclaim and corporation tax relief.
Is leasing an Audi the best option for you?
By now, you should have a good idea about which route is right for you – buying or leasing.
You might decide that leasing an Audi is the right option if you want lower, more predictable payments for easier budgeting and greater financial flexibility.
Equally, if you’re the kind of person who likes to change cars every few years and values driving the latest model, then leasing will probably appeal to you more.
However, if you’re not fussed about changing cars regularly, happy to commit to driving the same car long-term, and can afford higher monthly payments, then buying a car means that once the financing is fully paid, you’ll own a valuable asset that you can keep, sell, or trade in.
Ultimately, the choice is yours. What do you value more - long-term ownership or flexibility and low monthly outgoings?
Why choose to lease an Audi from Let’sTalk Leasing?
At Let’sTalk Leasing, our Audi lease deals start from £278.92 /month.
Whether you’re interested in the eco-friendly all-electric Audi Q6 e-tron, the affordable Audi A3, or the sporty Audi RS3, we offer competitive leasing deals on all the most popular Audi models.
We’re committed to making car leasing as affordable, straightforward, and stress-free as possible.
We offer:
Competitive pricing and a price-match promise
Optional maintenance packages
Expert guidance from our friendly team
Free delivery to mainland UK
A transparent and jargon-free service
Browse our competitive Audi lease deals online today, or give our team a call on 0330 056 331 for help choosing the right car or deal for you.