You’re looking to buy a new car. Great! However, when you’re going through the car buying process there is one key question that we all tend to ask ourselves: “Should I lease or buy?” We know that this question can be incredibly tough to answer. That’s why we decided to throw together a list of advantages and disadvantages of each decision to hopefully allow you to make the decision that is right for you!
Leasing
The nice part of having a lease is the fact that it is more short-term than buying a car. For example, when you buy a car you could be paying it off for upwards of a decade. When leasing a car, the contracts usually come in 3 or 5-year contracts. This means if you’re the type of person who enjoys having the latest and greatest technology, leasing could very well be the right choice for you. By leasing, you can ensure that you will have the newest car in a few years, as you can just trade in your leased car once the contract is up.
Leasing can also often times be cheaper than buying. For example, if you wanted to buy a new car, you may be paying $500/month for 10 years. However, if you lease that same car you may be paying $350/month for 5 years. Therefore, if you’re on a tighter budget leasing may be an option that is worth looking at.
One of the main issues of leasing is the fact that many dealers will actually restrict your mileage when you lease a car. For example, the dealer will usually put this limit between 9,000 and 15,000 miles per year – going over the mileage put in place can leave you with still penalties.
Another issue is with leasing a car, you are simply renting it from the dealer – it’s not yours to keep. It is not an asset, you can’t make alterations and you can’t sell it to make money. Once you’re done, you must simply hand the car back over to the dealer in the condition you received it.
Buying
Buying has many benefits to it that will definitely make you think twice before leasing. The main benefit of buying a car is the fact that the vehicle is yours to keep. You can do whatever you want with that car because you’ve bought it. If you’re the type of person who cherishes their vehicles and likes to keep them for years to come, then buying is definitely the right option for you.
Buying a car is much like buying a house – when you’re done with it, you can rest easy knowing that you will get money back for it. When you lease a car, you hand the keys back to the dealer when you’re finished with it. When you’re done with a car you’ve bought then you get to sell it – meaning you can potentially make a lot of money from your purchase. This is especially important as some cars may even increase in value as time goes on.
With that being said, there are still some issues with buying a car. First of all, payments can be much more expensive than leasing the exact same model of vehicle. These payments will also typically last longer. On top of that, a new car will also require a hefty down payment that has to be paid up front. Buying a car is a commitment – but one that can pay off in the end.
There really is no right answer when it comes to buying or leasing a car. It depends on your wants, needs, and goals. There are benefits and drawbacks to both – so do your research before you make that big decision!
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