Buying and leasing a car both have pros and cons.
Many people will prefer leasing a car over buying one because leasing is less costly and you can drive almost any car you want without having to buy it, or put down a lot of money.
Buying a car can be a difficult commitment: you have to spend a lot of money at once and pay off the vehicle’s deterioration – but there are many advantages too. You own the car, can drive it how you like and it will eventually pay back after owning it for several years.
The decision of leasing or buying a car depends on you. Leasing a car can be preferred according to your financial condition and other factors.
Who Should Buy A Car?
The answer can be rather simple: if it’s within your finances!
If you have enough money, don’t mind the deterioration and don’t mind paying for the expenses – then buying a car is for you.
You shouldn’t consider buying a car if you’re already in debt, or have to commit to a financial loan that requires a high-interest rate that might trap you. If you want a permanent car for your family usage, then you can go for an affordable vehicle which is easy for you to purchase.
Sometimes, there are loan options available for new cars.
This is a wise decision if you can easily pay some money monthly, or yearly, and don’t have the immediate resources to pay for the car all at once. In truth, however, leasing often turns out to be more affordable than auto loans – the only difference is you won’t end up owning the car.
Also remember that when you own a car, you’re liable for the all the repairs it will require. If it breaks down, or there is a pressing issue – you will have to pay money to fix it, which can be an unexpected and upfront cost.
Who Should Lease A Car?
Leasing a car is for those individuals that want to drive a car but don’t want to buy one outright, for whatever reason.
Perhaps they don’t enjoy being liable for the repairs and fixes, earn enough to change their car every few years, or simply enjoy the convenience that comes with leasing.
Leasing provides other options that buying doesn’t: you can drive your dream car but don’t have to worry about paying an expensive fee upfront, get it brand new and don’t have to worry about selling it on later.
Leasing companies give you many benefits with the leased car.
If you take out a maintenance package, then most repairs won’t be your financial responsibility. Also, the leasing period is usually for three years. Once the leasing period is over, you have to hand over the car to the dealer, and at the same time, you can lease another model or maybe another car.
So, Which is a better option?
The easiest answer is that it entirely depends.
You cannot say leasing is better than buying a car because it varies from person to person.
It’s usually those that see cars as an investment will buy one, because they’ll keep the car over a long term and wouldn’t want to waste the money by paying monthly payments to a leasing company.
For those that simply want to drive a car and enjoy having a new car every few years, it makes much more sense to lease. They can drive the car, enjoy it and then hand it back at the end of the contract only to take out a new lease.
As always, make sure to look at your lifestyle, needs and finances to determine whether you should buy or lease a car.