Many people think that the only way to get a new car is to buy paying for the car in cash or taking out a loan. In the past, leasing was only able to be done by corporate customers. Luckily for the average car buyer, leasing has now become accessible to everyone. Because of the increase in vehicle prices, many people are starting to consider the option leasing. Leasing makes it easier to purchase a more expensive car that could not be afforded any other way, but purchasing your car up front might be better for your financial situation.
Because every situation is different, your decision to lease or buy a car should rely on your specific situation. Before making your decision it is a good idea to sit down and make a list of what benefits may help you the most. Listed below are some of the pros and cons of leasing a car versus buying a car.
Benefits of Leasing a Car
1. A monthly payment for your lease could be cheaper than a down payment for purchasing a car. This option is especially feasible if you only have money saved up for a smaller sized down payment. A lot of car leasing options don’t even ask customers for a down payment.
2. If you lease your car you have a better chance of accurately predicting how much it will cost to own your car. Most leases go for a three year period, this is the average amount of time that a bumper to bumper warranty will last. Most lease options also offer a warranty, aside from the regular maintenance of the car.
3. If you like having the latest and greatest in car technology, then leasing is most likely the better option for you. Because leasing allows for a short term commitment, those leasing cars can update their car every three years (or for as long as the term is). The latest cars are often up to date with their maintenance and are even covered by the manufacturer’s warranty. Once the lease is finished you can simply turn the car in and then choose your next vehicle!
If you already have an idea of which car you are looking at to lease or buy, take some time to look at the numbers. Most likely, you will find that the leasing option will pay you back more money in the long end. If you need help with working out the costs, as the dealer for a consultation so that you can have more support in making your decision.
Benefits of Purchasing a Car
1. If you are planning on keeping your car long term, then buying a car may be the better option for you. After you pay your loan off, the car is officially yours and you don’t have to worry about reporting to a car company.
2. When you own a car you do not have mileage restriction. If you travel long distances then you might want to consider purchasing a car so that you don’t have to worry about the long distances.
3. If you own the car, you will be able to make money off of it once you are finished. If you maintain the car well enough, you may even get a decent price.