Buying vs. Leasing: Which is the Best Choice for You?
When it comes to automobiles, a crucial financial decision is whether it’s best to buy or lease. Here, we highlight the advantages and disadvantages of both these financial options to help you figure which might be a better option.
Difference between Leasing and Buying
Leasing a model is largely similar to renting, only for a much longer period and with more flexible terms and agreements. You lease a car for a certain duration from a dealership and make monthly payments. However, you never get ownership.
On the other hand, when you buy a car, you are entitled to complete ownership rights. However, in this case, the fixed amount you are required to pay is much higher.
Advantages and Disadvantages of Leasing a Car
Lower monthly payments – The monthly payments you have to make to the dealership is relatively lower when you are leasing a vehicle.
Constant warranty protection – The warranty protection provided is quite satisfactory and is constantly available to you throughout the lease period in case of an emergency.
Flexibility concerning the usage of cars – If you are only leasing, you will be able to explore a number of different types of cars within a short span. So you won’t be tying yourself down with just one variant.
Constant and stable income – Since you will be required to pay a constant amount to the dealership in return for leasing, a stable source of income is mandatory.
Inflexible terms and conditions – Since you do not have ownership over the car, the terms and conditions are rather inflexible.
Low mileage – There is a limit to the mileage attached to leasing, which is rather low.
Advantages and Disadvantages of Buying a Car
Ownership – At the end of it, you will gain ownership over the vehicle.
No conditions or limits attached – Since you have ownership, there are no conditions or limits attached.
After warranty care of the car – After your car runs out of warranty, you will have to take care of all its repairs. This might be a rather expensive affair.
High payments – The payments associated with buying a car are way more expensive relative to leasing.