If you have wondered what the difference is between buying and leasing a car, this brief article is for you. There are certainly different advantages and disadvantages involved in both of these types of car agreements. The difference really boils down to individual preference and your own financial situation. You will want to consider what you want to get out of a vehicle, your own driving arrangements, and how new you want your car to remain. There are other considerations to take into account as well, of course, but this will give you some information that will prove helpful as you head out to the car dealership in your area.
You Will Want to Know About Depreciation
The first thing to keep in mind as you shop for a new car is that the value declines significantly as soon as miles begin to be put on it. And we are not talking about thousands of miles either. In fact, as soon as you buy a car and drive it off the lot, you might find that it is already worth thousands of dollars less in many situations. That is not a very appealing prospect to a car buyer who has just saved for quite some time to buy the car of his or her dreams. One way to avoid this is to enter into a lease. Sure, you will not necessarily be the owner of the car, but you can drive it wherever you want. You get the benefit of a brand new car, without having to worry about the depreciation.
Selling a Car is Not Much Fun
If you have ever set out to sell you car, you realize what a headache it can be. First, you have to get it cleaned up and presentable in order to attract a buyer. Then, you actually have to find a way to attract buyers, and that usually involves advertising it somewhere. This is already a lot of work, and you haven’t even shown the car yet. On top of all this, you might find it frustrating to get someone to pay you what the car is actually worth. Remember, depreciation is always a factor, as is the age of the car. People just do not want pay a lot of money for a car that someone else has been driving for a few years. If you are turned off by this prospect, then leasing a car again becomes quite appealing. You will never have to sell the car, because it is not yours in the first place. Just return it to the dealership at the end of the lease and then pick out another new car.
You Do Need To Watch Your Miles
One big difference between buying and leasing a car is reflected in terms of how you can actually drive the vehicle. When you buy a car, you can drive it as much as you want, from the very first day. This is definitely a positive if you intend on taking the car on quite a few road trips with the family. Just keep in mind that the more miles you put on the car, the more difficult it will be to sell it for the amount of money you would like when then time comes. With a lease, you will be limited in terms of how many miles you can drive. You do not want to exceed that number of miles either, as to do so will incur a penalty for every miles that you exceed the allowance given to you buy the lease. The trade off is that your car will stay looking and driving like new for the duration of the lease, which is what you are hoping for anyway.
This information is designed to help you understand the difference between buying and leasing a car. Take time to reflect on what the best option is for you and then go out and get your car. Enjoy the journey.