The Pros and Cons to Buying and Leasing a Car

Updated: Sep 18, 2021

Deciding whether to buy or lease a car is an age-old challenge. There are no perfect answers, just important considerations based on what is important to you.

There are several things to consider when you're trying to get a new ride. One of the most common topics you may find yourself debating is the question of whether to buy or lease your next car. Both choices are great though it solely depends on your preference for which is best for you. First and foremost, we will explain the distinctions between buying or leasing a car.

The Advantages of Leasing a Car

When a car is leased, it simply means that it is rented from the dealership. When you opt for a lease, you’ll be given a period during which you’ll drive the car. After the time runs out, the vehicle will be returned to the dealership, unlike when you buy a car.

The great stumbling block about leasing a car is that you don’t acquire any equity in it. Just like when an apartment is rented, when it comes to leasing a car, you only make payments monthly but lose all claim to ownership when the lease runs out. Additionally, you’ll have to pay for any excessive wear and tear in your leased vehicle when the lease expires.

Nevertheless, on the good side of things, the advantages include the following:

  • Lesser Monthly Payments: Most often, lease payments are lower than monthly loan payments when considering your budget. It’s always important to confirm that your insurance deals with any bills that may be required, even if the car is totaled before the lease expires. For that, you may want to have a look at the totaled car value calculator.

  • A New Car Every Few Years: Well, if you have a knack for often riding out on brand new wheels, leasing might be the perfect option for you. After a few years, when the lease has been exhausted, it’s always ideal for you to return it and get a new one.

  • No Maintenance Worries: Most of us are not only bothered by the costs of getting a new car but also by expenses due to major repairs like that of the body damage and fender repairs.

  • Avoid Depreciation: You’ll have to deal with any depreciation in the value of the car from the time you bought it until the time you’ll eventually sell it. When the period of warranty runs out, you’re responsible for all major repairs. It is more expensive to buy cars when you’re fascinated with the new launch of cars because, in leasing, you can return your vehicle to the dealership after 2-3 years when the lease runs out and get a new one but, that is not the case in buying a car.

Note: If the damages go beyond wear and tear, you should immediately contact both your insurer and provider. Then, move the vehicle to an approved garage that is listed on the lease contract.

The Advantages of Buying a Car

While there are many advantages to owning a car, some of the key ones include:

  • Long-Term Considerations: According to experts, when you’re looking for an option that’ll be beneficial in the long run, particularly financially, then buying a car appears to be a better option.

  • Liberty in Driving: You don’t have to be bothered about the mileage you’ve spent as the lease's mileage limit is not so much compared to when you are driving a car you own. You can also save money by not having to pay incremental fees at the end of your lease as a result of overages.

  • Value for Money: You don’t have to remove a portion of your salary to monthly payments attached to leasing. Also, you get to grow equity in your vehicle that you can use in the future when you try to sell it.

  • Eventual Ownership: Imagine not having a car payment, and what you could do what that monthly amount instead of paying for your car. Owning a car eliminates a source of ongoing, reoccurring debt.

What is better, leasing or buying a car?

If you intend on surpassing the milestone of 250 miles per week, then you should run up the numbers with the terms in your lease contract to see if it’s ideal for you to lease or buy. If you have a knack for driving the latest model of cars, then signing up for a lease would be a better option. There are many positives and negatives in regards to this topic. So, in the end, it is you who gets to choose which is better for you.

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