To buy or not to buy?

To buy or not to buy? That is the question many motorists will be asking themselves as they prepare to get on the roads this year.

According to the Belfast Telegraph, money-savvy motorists should consider putting their cheque books back in their pockets and investigating an alternative method of gaining access to a car: hiring one.

The newspaper uses 31-year-old Liam McGarry, who is a self-employed Belfast-based consultant, as an example.

McGarry drives more than 1,000 miles per month, which will seriously affect the value of this vehicle over time.

Therefore, rather than buy a car the businessman is advised to embark on a long term car hire contract, which will allow him to keep money in his bank account while paying a monthly fee to the lease firm.

According to the publication: "Essentially, Liam won't end up owning a car, at the end of the hire or lease period he simply signs up for another car.

"This is supposed to be an efficient way to use company money and it may well fit in with Liam's desire to have a car that won't embarrass him in front of clients."

It adds that it also means McGarry will end up with the car he "really fancies" rather than driving around in an old banger.

Furthermore, this enables him to pick the most economic vehicle and consequently cut back on his fuel expenses.

On the other side of the globe, the New Zealand Herald has also been mulling over the issue of whether or not motorists should bother buying a car when they could hire the vehicle of their choice for less.

Business blogger for the newspaper's website Bruce Morris says that car hire is a particularly good option for those about to embark on a trip that involves lots of driving.

He says: "Renting, of course, is the way most people go."

Furthermore, the newspaper reports that during 2008 experts predict that around 2,000 leases of cars will be written from New Zealanders visiting Europe.

However, motorists looking for the real bargains were advised to steer clear of car hire firms and opt for lease operators instead.

Bruce said: "The big French car manufacturers, Peugeot, Renault and Citroen, lease brand new cars to tourists and, once the lease period is completed, are able to onsell vehicles tax-free on the local second-hand market."

He concluded that most people who go for this option will be speeding ahead in the financial fast lane having saved hundreds of dollars.