Do you dream of being able to drive around in a yellow Lamborghini? You might not have enough cash to be able to buy your dream car,but there are other options worth considering. When it comes to buying a new car, most people are faced with the choice of leasing or buying. There are pros and cons to both, and it’s really a matter of personal choice as to which is the best. To help you decide, here is a look at the advantages and disadvantages of buying and leasing. Read them and then decide for yourself.
The Advantages of Leasing
If you want to be able to drive around in the latest and greatest car, leasing is going to be an attractive option. Leasing means you’ll be able to change your car every couple of years if you want to. Factory warranty covers the cost of most repairsalthough you will still need to pay for maintenance and windshield repairs. Find out more here.
At the end of the leasing period, you have the option of trading it in, getting another lease car, or buying it at a predetermined price.
The Disadvantages of Leasing
When you enter into a leasing agreement, you are limited in the number of miles you can drive the lease car. Generally, you’ll be unable to make any alterations to the car either. At the end of the lease period, you may have to pay “wear and tear” fees if the vehicle has not been properly maintained.
Is Buying a Better Option?
When you buy a car, it is considered to be your own asseteven if you took out a loan to pay for it. There are no mileage restrictions, and you can drive it as much as you like. If you want to add custom trim or chrome rims,you can do it if you want to. When all aspects of buying vs.leasing are taken into consideration, buying a car is the most cost-effective option. However, there are downsides worth mentioning.
It’s very likely that you will have to come up with a sizeable down payment and because the value of your car will depreciate,it makes your investment less valuable. If you finance your purchase with a car loan,you have to pay interest and depending on the length of the loan; the interest could be a large sum. While certain repairs may be covered under warranty,eventually you’ll be responsible for all of them.
There are definitely some worthwhile benefits to leasing a car, especially if you want to enjoy a vehicle that would normally be out of your price range. Being able to change it every two or three years is another important benefit. Certain factors need to be considered when comparing buying with leasing. For example, the amount of driving you do, whether you’ve got a vehicle to trade in, and the deals available to you for financing. Being responsible for wear and tear will also influence your decision if you live in a neighborhood that is generally tough on cars. by: Umer Mahmood