Many people today are considering whether they should lease or buy a car the next time they are in the market. There are some legitimate advantages and disadvantages of each to consider. The reality is that the decision will likely come down to your personal situation and what are looking for in a new car. In an effort to help bring clarity to this topic, we have prepared the list below to detail the benefits and possible pitfalls to both leasing and purchasing a new car outright. Take a look and carefully consider all of the various options available to you before making your final decision and driving off in your new car.
Advantages of Purchasing a New Car
Consider the following advantages typically associated with buy a purchasing a new car outright.
- You Own the Car – If you are looking for a car that you can truly call your own and make any modifications that you desire, purchasing does carry an advantage over leasing.
- Ability to Sell Later On – If you enjoy the prospect of selling a car once it has outgrown its usefulness to you, this is another advantage of owning the car. You will not be able to sell a lease.
- Can Drive as Much as You Want – When you purchase a new car, you can immediately begin driving it to the moon and back if you so desire. If your driving habits involve a long commute or a number of annual family getaways, buying a new car does have its advantages.
Disadvantages of Purchasing a New Car
Now that you understand the advantages associated with car buying, consider the following disadvantages that are commonly mentioned as well.
- Depreciation – As soon as you purchase a new car, the value goes down considerably. The more expensive the car, the higher the depreciation. This can be a bit troubling for some.
- Costly Repairs – Aside from the first few years when your car may be under warranty, most repairs will be your responsibility when you purchase a new car. This can really take a chunk out of your personal budget.
- Difficulty When Selling – Many people do not want to give you what your used car will be worth when it is time to sell it. This can make it more difficult to go and buy another new car when you are ready.
Advantages of Leasing a New Car
Here are some advantages to consider when leasing a new car.
- Low Monthly Payments – A car lease typically has lower monthly payments when compared with a new car that is financed.
- Get More Car On a Tighter Budget – Because of the lower payments, you will often find that you can get an even nicer car than you thought your budget allowed for.
- Keep that New Car Look – With lease terms that typically expire in three years, you can get a new car quite often and keep that new car look virtually forever.
Disadvantages of Leasing a New Car
Now, take a look at a few of the disadvantages of leasing before making your final decision.
- Limited Mileage – You will want to keep in mind that a car lease will come with a mileage cap, so you will want to watch how much you drive.
- Lack of True Ownership – You will not own the car that you lease, so you cannot do with it as you wish.
- Good Credit Required – To get the lowest possible monthly payments on a lease, you will want to have good credit.
This should give you more than enough information to make your decision. The key is to feel happy with your ultimate decision and to enjoy whatever car you end up with. In the end, leasing is a viable option for people looking to get into a new car every few without having to fork over a lot of cash. Look over your options and then head over to your local dealership to discuss the possibilities available to you.