Is It Best to Lease or Buy a Hybrid Car?

Should You Lease or Buy That Hybrid Car? Let's Chat About It 

So, you've got your eye on a hybrid car? Good choice! They're taking over UK roads faster than coffee shops on high streets, and for good reason - they sip fuel like it's an expensive cocktail and they're much kinder to the environment – nice. 

But, should you lease one or buy it outright? Lets go through the pros and cons.  

Leasing a Hybrid 

In case you don't know, leasing is a long-term rental where you pay monthly for 2-4 years before handing it back.

The Leasing Good

Cash in the bank 

Rather than forking out a load of cash, you can choose how much you pay upfront when you lease. When I leased my first car, I put down about £3,000 and then paid £250 monthly - much easier to swallow than the £35,000 purchase price!  

Budgeting becomes weirdly simple

You know exactly what you're paying each month. No surprise repair bills, no "oh no, it needs new brakes" moments. Just the same payment, like clockwork. 

Hybrid tech is evolving fast

Today's amazing hybrid tech might be yesterday's news in a couple of years. With leasing, you can upgrade to the latest and greatest every few years. 

Forget about depreciation

While hybrids hold their value better than traditional cars, they still lose value – this is because of our previous point. With leasing, when the value drops, it's not your problem - you just hand back the keys and walk away. 

Maintenance packages are life-savers

Many leases let you add maintenance packages that cover servicing and sometimes even tyres. If you add one for an extra £20 a month, you don't have to worry about a thing for three years.

Business users, listen up!

If you're leasing through your business, you can usually reclaim 50% of the VAT and benefit from lower Benefit-in-Kind tax rates, especially with low-emission hybrids. You can save a small fortune by leasing the right car (like a hybrid) through your business.  

The Leasing Bad 

You'll never own it 

At the end of your lease, you wave goodbye to your car. Like Ian Beale, you'll have nothing left. That said, is that really an issue?  

Mileage Allowance

Leases come with mileage limits (anywhere from 5,000 to 35,000 miles annually). Go over, and you'll pay extra - anywhere from around 10p per mile. You can increase your mileage mid-lease though, so don't stress too much.  

Breaking up is hard (and expensive) to do

Need to end your lease early? Be prepared for a hefty fee - often 50% of your remaining payments. Make sure you got for a lease length you know you'll be happy to stick to. 

Buying a Hybrid: The Traditional Route 

Buying outright (or on finance) means the car is all yours. But is it the right move? Let's see.  

The Buying Good 

It's yours, all yours  

No contracts to follow or mileage limits. Curbed an alloy, no worries. Want to change the colour, go ahead (that one sounds expensive, though). 

Unlimited mileage freedom

Drive to Scotland and back every weekend if you fancy. No one's counting your miles or sending you a bill when you go over. 

Sell whenever you want

Changed your mind? Need something different? You can sell it anytime you want without penalty.

It might save you money long-term

If you plan to keep the car for 7+ years, buying often works out cheaper in the end. My grandad used to keep his cars until they couldn't move. Fair enough.  

The Buying Bad 

The upfront hit is big

Whether you're paying cash or getting finance, buying usually hits your wallet harder that leasing initially. Finance monthly payments are typically higher than lease payments and you have to worry about APR. 

Hybrid tech keep evolving  

What seems high tech today might feel outdated in a few years. They change so often, that it'll likely effect the value of your car.

Repairs can be pricey

Once the warranty expires, you're on your own. Hybrid systems can be expensive to fix if something goes wrong.  

What's Right For You? 

Lets sum it up: 
 
Leasing your hybrid makes sense if... 

• You like having the latest tech 

• You prefer fixed monthly costs without surprises 

• Your mileage is fairly consistent and not extremely high 

• You're not emotionally attached to owning your car 

• You're using it for business and want those tax perks 

Buying is probably better if... 

• You rack up loads miles each year (30,000+) 

• You plan to keep the car for more than 6+ years 

• You like the idea of no car payments eventually 

• You want complete freedom to modify or sell whenever 

• You don't mind dealing with depreciation and repair costs 

My Two Pence (feel free to skip) 

I like leasing anyway – I don't want to have to worry about something going wrong, getting a puncture, budgeting for a future service. Plus, with hybrids changing and evolving as much as they are, I wouldn't want to buy one and see a new version come out a year later.  

Still not sure what's right for you? Drop us a line - we're always up for a chat about cars (perhaps a bit too much, according to my partner who has to listen to me talk about hybrid drivetrains over dinner).