Car buying or leasing: a thorough economic comparison

Abstract

The following dissertation aims to provide a holistic understanding of the main differences between car leasing and buying from a practical, financial and customer standpoint. Drivers continuously face the growing difficulty if making the more financially sound choice because of the growth rate of the automotive industry. The benefits and downsides of both vehicle purchasing and leasing, the way in which car leasing works as well as the trends that are defining vehicle acquisition consumer preferences, are studied with the help of a thorough literature review which could prove to be of vital importance. This dissertation further focuses on understanding public perception in terms of leasing versus purchasing a vehicle while also paying attention to information given by experts on the subject. It aims, through both a quantitative as well as a qualitative research method, to understand how consumer choices are influenced by factors such as age, gender, financial limitations and even customer psychology. The dissertation ascertains as to how consumer behavior is being altered by new trends such as economic downturns and the rise of EV’s. It further investigates the importance of motives such as tax write offs and no maintenance costs across different demographic segments. The study becomes further multifaceted because of the integration of the expert insights of an experienced accountant and sales executive and that of the public. Eventually, the purpose of this dissertation is to unearth any factors that might speed up or slow down the growth of the vehicle leasing industry in Greece.