The decision to buy or lease a car is an important one. There are many factors to consider before choosing which option is best for you. This article will detail the advantages and disadvantages of both choices so that you can be better prepared when it’s time to choose what’s right for your financial situation.
Advantages Of Buying A Car
You’ll have more flexibility. With leasing, you are limited to what cars are available to lease. When you buy a car, you can choose any make, model, and even color that you choose. You can customize your car to your liking. Leasing allows for little customization of the car once it is purchased. When buying a car, there are many colors, models, and other options to select from so you can truly make it yours.
It’s also easier to sell later on down the road. When the time comes that you’re ready to get rid of your current vehicle and upgrade to another one, selling it yourself will allow for greater profits than if leased. With financing remaining attached to your car, it makes for a difficult sale in comparison. You can also keep up with the latest technology in your car. Change happens fast when it comes to cars and updates are constantly being made that you might not be aware of unless keeping yourself informed. When leasing, you will only receive the specs of the vehicle at the time of signing and cannot upgrade without making another lease agreement at an additional cost. With buying, you’ll always have access to the newest models which keep your experience up-to-date.
Disadvantages Of Buying A Car
It’s expensive up front. When purchasing a car, there is typically a large fee required right off the bat in order to cover taxes and other costs involved in the transaction. You get to negotiate the car price but it still ends up costing more than if you would be leasing. Since you are working with a depreciating asset (the value of the vehicle decreases over time), buying can become an even larger expense when paying to maintain and ensure your car over its lifetime. Leasing, on the other hand, involves only a small monthly rate for depreciation and insurance which not only makes it more affordable but allows for additional ways to upgrade as part of the contract included in your lease agreement.
Advantages Of Leasing A Car
You’ll always drive a new model. With leasing, you will always be driving the latest model so if having the newest technology is important to you then this may be a good option. You know exactly how much your monthly payment will be. With buying, there are many variables that can increase or decrease your monthly payments which makes it difficult to predict ahead of time. When leasing, however, you’ll know exactly what your payment will be on a month-to-month basis so it’s easier to budget for and stick with.
Also, there is no additional fee for an early buyout of the vehicle. When leasing, there may be extra fees attached in order to get out of your lease early (typically after about 2 years of making timely payments). If you’re able to sell your car before then, it can be a great option for you and according to this car dealer in Mt. Laurel, it also reduces the amount of money spent on maintenance and insurance. Leasing typically increases mileage quickly so any extra fees that would have been attached to this will not exist when buying a leased vehicle. This also means less time wasted having to keep up with routine maintenance so there is more free time to enjoy other aspects of life instead.
Additionally, you get a manufacturer warranty included in your contract. When leasing, manufacturers typically offer some type of warranty usually extending about 2 years or longer which makes it easier for any unforeseen repairs to be covered by the company responsible, rather than out-of-pocket expenses from you as an owner.
Disadvantages Of Leasing A Car
When you lease instead of buying a car, you don’t ever get to enjoy owning something special like having the only one in town. Buying keeps your life more interesting by giving you bragging rights and allowing people around town to admire your new purchase. Buying a car means you own it outright and will never lose ownership unless the vehicle is abandoned or repossessed due to non-payment. However, if payments stop or an agreement is broken then the lender has the right to take back the vehicle and sell it at auction.
While both buying and leasing can be an enjoyable experience, making a choice is all down to your preference and lifestyle. If you enjoy having the newest technology, are able to budget ahead of time, don’t mind trading in your old car when making a purchase, are okay with potentially higher maintenance costs over the long-term, want to get out of a lease early without additional fees or want to have access to manufacturer warranties then lease may be right for you. On the other hand, if you prefer certainty in monthly payments made each month that won’t fluctuate wildly depending on factors like mileage driven and unexpected repairs required throughout ownership then it would be best to consider purchasing your vehicle.
