Which Is Better: Leasing Or Buying A Car?
To lease or to buy a car, that is the question! Seriously, there are a lot of things for people to consider when making the choice between buying or leasing a vehicle. While for some drivers the decision comes down to the overall cost, for other drivers, however, it comes down to the benefits of owning a new car that comes with a car lease. In this blog we will provide you with the necessary information regarding leasing and buying a car, including the differences between the two, and some of the benefits that car ownership and leasing a car have to offer.
Leasing Vs. Buying A Car: What’s The Difference?
Leasing a vehicle simply means making monthly payments for driving a car for a specified period of time according to the lease agreement. Most car leases run for a period of 36 to 48 months. When leasing a vehicle, you are under specific restrictions as to the allowed maximum mileage that you can put on the car, along with the restrictions regarding any upgrades or modifications that you wish to make to the vehicle. It is important to note that various fees may apply depending on the leasing company. Once the term on your lease ends, you can return the car to the dealership or purchase it at a predetermined amount.
Buying, or financing a vehicle means that you take the title ownership of your car. Owning a car outright happens when you pay the full amount for it in cash, or when you finalize making loan payments under a financing plan. When you buy a car, you maintain control of it and you have the freedom to keep the car, modify it, sell it, trade it in, or simply give it away.
Benefits Of Leasing A Car
Lower monthly costs: in most cases, car lease payments are lower when compared to monthly payments for a new car. The down payment is usually lower compared to buying a vehicle, however, this will depend on factors such as the sale price, length of the lease, expected mileage, the rent charge, and applicable taxes and fees.
You get a new car: for many people, getting into a new car and taking advantage of the newest technology that car manufacturers offer with brand new vehicles is the reason for leasing. Once the lease term is up, you can make the decision to lease once again and drive off from the dealership in another new vehicle.
Worry-free maintenance: most leases offer a warranty that last up to three years and this means that your car repairs will be covered under a 36 month lease.
Pros Of Buying A Car
There are no restrictions: unlike leasing a vehicle, when you buy a car you are not bound by restrictions such as the mileage that you're allowed to put on the car and you will not be subject to fees as to the wear and tear of the vehicle.
You have total control: unlike leasing, when you own your vehicle you have total control over factors such as modifying and improving your car’s interior and exterior. Additionally, you have the choice to keep the car until it is no longer drivable, you can trade it in or sell it, or you can gift it to a family member.
Lower long term cost: it goes without saying that if you own your vehicle, you can significantly save a lot of money in the long run compared to leasing a car.
So, which is better, leasing or financing a car? As you can see from the above, this is a question that is totally dependent on your lifestyle, your preferences, and your financial situation. While leasing gives you the opportunity to own a brand new vehicle every few years, it is generally more expensive than owning a car outright. Again, the decision is entirely up to you.
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