When you are in the market for a new vehicle or trying to customize your current ride with new upgrades from an online wheel store, the battle of choosing whether to buy or lease generates an inner struggle. Knowing the pros and cons of leasing vs. buying a car will help you decide the best fit for you.
No Worries – Leasing a vehicle gives the driver minimal stress when it comes to maintenance. Depending on the agreement you sign with the dealership, you will likely save some money on any car troubles that occur.
Staying Fresh – Driving your car will never feel stale when you lease. You can trade in your model for the newest ride without any complications. This advantage is great for any consumer who likes a wide variety of options.
Financial Flexibility – Since you don’t have to pay any interest on a vehicle when you lease, lessees will ultimately spend less per month on their car than buyers. Furthermore, if you use your vehicle for business purposes, you may also be eligible for tax breaks that aren’t available with a car loan.
The Payments Never End – Similar to renting a home or apartment, the monthly costs will never disappear. You will continually pay for something that you will never own.
Limiting Your Miles – Keeping an eye on your odometer makes driving your car less enjoyable, and going over that limit will cost you fees and penalties.
No Changes – Since you don’t own the car, you cannot add any personal touches to your vehicle. You must return the car to the dealership as it left the showroom, limiting the complete satisfaction of having a new car.
Ownership Brings Change – When using a bank loan, the prize at the end of the road is ownership. Owning a car gives you an asset that you may sell, trade, drive, or customize as you wish.
The Long Run Wins – The first few years of ownership will cost you more money, figuring that the attached interest will have you upside-down on your loan. However, once all that interest vanishes, you will save money on payments.
A Sense of Pride – Owning a car may give you a sense of pride that leasing does not offer. Making the last payment on a car loan will provide you with plenty of reasons to celebrate and feel proud.
Increased Monthly Payments – As stated above, the interest on your car loan causes higher monthly payments. If you want to lower your monthly expenses, a sizeable down payment allows some leeway, but that’s a whole other issue that may cause problems.
The Depreciation Rule of Thumb – Unfortunately, cars usually lose value over time. Generally, cars lose 20 to 30 percent of their value each year. This fact causes hesitation among many potential car owners.
Maintaining Your Possession – Maintenance for your vehicle is another component worth assessing. Fixing your car’s issues brings on unwanted short-term expenses. Dropping hundreds or thousands of dollars on car repairs creates more potential financial burdens.
Now that you know the pros and cons of leasing vs. buying a car, what decision will you make?