When it comes to getting a new vehicle in 2025, many businesses and drivers are asking the same question: “Should I buy or lease?” While owning a car has traditionally been seen as the standard choice, car leasing in 2025 offers clear financial and practical advantages especially when you consider the total cost of ownership.
Buying a vehicle involves far more than just the purchase price. Depreciation alone can drastically reduce a car’s value with new vehicles losing up to 40–60% within the first four years. Once warranties expire, maintenance and repair costs can also rise unpredictably.
In the UK, Vehicle Excise Duty (VED) and other taxes can further increase running costs. For example, higher-value and even some electric vehicles now attract additional VED charges. When you add up depreciation, maintenance, and taxes, car ownership is often more expensive than it first appears.
Leasing spreads the cost of a vehicle over a fixed monthly payment, making budgeting easier and more predictable. Many car lease deals include maintenance, insurance, and road tax reducing the likelihood of unexpected expenses.
One of the biggest advantages of vehicle leasing is that you don’t have to worry about depreciation or resale value. At the end of your lease, you simply return the car and can upgrade to a newer model.
Benefits for businesses and fleets
For businesses, leasing company cars can be both practical and cost-effective. Lease payments are often fully tax-deductible as business expenses, helping to improve cash flow and free up capital for other investments.
Leasing also allows companies to regularly refresh their fleet, ensuring vehicles remain modern, efficient, and compliant with the latest environmental standards. Access to the newest models means better fuel efficiency, advanced safety technology, and a more professional brand image.
At Citygate Leasing, our expert team helps individuals and businesses understand the true cost of vehicle ownership and choose the best car leasing solution to match your budget, goals, and operational needs. Whether you’re looking for a personal lease or a business car lease, we make the process simple, transparent, and cost-effective.