Are you looking for a new car? You may possibly be wondering whether to buy or lease a vehicle. Car buying and car leasing are two different ways of getting and enjoying a vehicle. You had better consider all the advantages and disadvantages of both options before making a final decision. Nevertheless, remember that the pros and cons depend on your own situation. The choice is yours and it is individual.
Now let us discuss all the advantages and disadvantages of both car leasing and car buying.
Advantages of car leasing:
• When you are leasing a vehicle you only pay for the portion of the car that you actually use. Your monthly payments are lower than if you chose to purchase the same vehicle.
• Another advantage of car leasing is that you need not make any down payment.
• Since monthly payments are so low and there is no down payment you can lease a new car every two or three years. This option is particularly favorable for those who are looking for new trends and are eager to drive the latest versions of luxurious models.
• Car leasing also allows you not to worry about car maintenance problems. You can lease the car for a period that coincides with the length of its warranty coverage so that if something goes wrong with the car, you can turn to the dealership for covering the repairs.
• With car leasing you need not worry about selling or trading in your old vehicle.
Disadvantages of car leasing:
• The main disadvantage is that your monthly payment doesn’t go anywhere. Leasing is not an investment like buying. When the lease contract expires you should either buy the car or lease another one.
• With leasing come the mileage and damage restrictions. Usually you agree with annual mileage allowance, around 12,000 to 15,000 miles per year. And if you exceed this, you have to pay for the extra miles. Also, you should take care the car is in good condition. If it is warned out or customized, you again have to pay excessive fees.
• You will get penalized if you decide to terminate your lease early.
• Leasing companies require the purchase of gap insurance i.e. you should make a preliminary payment in case the car is totaled or stolen.
Advantages of car buying:
• The main benefit of car buying is that you own it after you have paid for it. It can be a long-term investment for you.
• You don’t have to worry about extra mileage and damage fees. It is your car and you can change and customize it as much as you desire.
• You can terminate the car buying process whenever you want, without having to pay penalties.
Disadvantages of car buying:
• You have to spend a great deal of time maintaining the vehicle i.e. replacing flat tires, regularly changing the oil, etc.
• As time passes your warranty will expire and cause you a great deal of money problems.
• It is difficult to sell or trade in an old vehicle.
As you can see there is a lot to think about while deciding whether to buy or lease a vehicle.
Good Luck!