One of the most commonly asked questions at a car dealership is whether buying is better than leasing or if the opposite is true. There is no right or wrong answer for many buyers. Your financial situation, your wants and needs, and your budget are the biggest determining factors. As with anything else in life, there are pros and cons to buying and leasing. Your job is to figure out which is best for you.
The Pros and Cons of Buying
Buying a car comes with several pros and cons. The pros include the following:
– You own the car
– You can keep the car as long as you want
– You can trade in the car anytime you want
– You can sell the car anytime you want
– The value of the car is yours
– You can put as many miles on it as you want
The cons of buying a car include the following:
– Your car depreciates immediately after driving off the lot
– The payment is high
– You’re stuck with your car if you can’t afford to trade it in because the value is low in comparison to the payment
– The problems the car has are yours alone
– High miles cause the value to fall
When it comes to buying, you must weigh the pros and cons. Do you keep your cars for long periods of time? If you do, this is the right option for you. If you put many miles on your car, you might consider buying. It’s less expensive to buy a car if you plan on putting hundreds of thousands of miles on it.
The Pros and Cons of Leasing
Leasing is a simple process, and it comes with many pros and cons. The pros include the following:
– You get to trade in your car free and clear every few years for a brand new one
– The car is covered under warranty the entire time it’s yours
– Repairs and problems with the car are not yours
– The payment is usually a lot smaller on a lease
– Depreciation and value of the car aren’t a problem for you
Just like there are cons to buying a car, there are cons to leasing as well.
– The car is basically a long-term rental
– You’ll pay per mile for any mile you go over your contract at the end of your lease
– It’s not easy to trade in a lease early
– You pay for any excess wear and tear when you turn a lease in
There are pros and cons to obtaining any new car, but the idea of leasing is specifically better for most buyers. Unless you put hundreds of thousands of miles on your vehicle, leasing is a far better option. There is no financial hit, it’s more affordable, and you get to drive a car that you might not be able to afford otherwise. If you love to drive a brand-new car that always has a warranty and you love to replace your car with a brand-new car every year or two, leasing is the best option. It’s affordable, it’s safer, and it’s going to provide you with ample peace of mind when you are on the road. Buying is not a bad option, but it’s not nearly as beneficial or financially sound as leasing a new vehicle.