It’s time to go shopping for a new car because your old is just not getting you where you need to go anymore. When you are getting ready to get a new car, you are always left with two options: leasing or buying. Many people simply go for buying a car, but leasing is another great option that is often overlooked. In fact, leasing can be both more rewarding and more budget friendly than purchasing a brand new car. Don’t believe me? Let’s take a little look into leasing a car vs. buying a car.
Buying a Car
There is one major pro of buying a car outright over leasing the same car. When you purchase a car, you are the sole owner of the car. You don’t have to return the car at the end of a lease period, which means you can customize the car how you want. You also don’t have to worry much about wear and tear. However, you are also paying a much higher price to own the car. You must pay for the initial cost of the vehicle, the taxes, registration fees, and more. These fees also make your initial loan payment more expensive or may even cause your loan period to last longer than a lease period. While you might enjoy being able to keep the car after the loan period ends, leasing a car might be a more cost friendly option.
Leasing a Car
Leasing a car is not as difficult to understand as car dealers make it seem. Though you don’t own the vehicle, you get to trade in the new vehicle for another new vehicle after the lease period ends. Lease payments are most always lower than loan payments, making leasing a more budget friendly option. Lease periods are also shorter than normal loan periods, meaning you can get a new car sooner without having to worry about payoff and the high cost of a new car. However, you are only allowed to drive so many miles on a lease. If you go over those miles, you are required to pay for those extra miles. Leasing is a better way to get the car you want as well.
Why Leasing is Better
So why is leasing a better option for you? If you are on a tight budget, you should lease. If you don’t drive over a certain number of miles in a year, you should lease. Leasing a car means getting a new car sooner, faster, and cheaper than purchasing a new vehicle. Your lease period is shorter than a loan period, and leasing a car can help you save money as well. In many ways, leasing outranks purchasing a new car. You can choose the newest models, the fanciest features, and more all while staying in your budget. The best part is, in as little as two years, you can return the car to get the newest model on the lot in exchange. One other amazing thing about leasing is the ability to purchase if you enjoy the car you have just leased.
What to Do Next
Since you’ve considered both options, you should consider your lifestyle next. If you are a single adult who drives very little during the year, leasing is the better option. However, if you have children, leasing might not be a good idea because wear and tear are your responsibility, and it could cause additional fees when returning the car. You should also consider your budget because loan payments and lease payments can differ depending on the dealership and the vehicle.
Getting a new car is both exciting and nerve-wracking at the same time. You could always buy a new car, but you could also get the same car for a lower price by leasing through your dealership. Leasing is a great option for single adults and those who might be on a tighter budget. Though leasing is an amazing option for getting a new car, it might not be the best option for everyone. You should consider your lifestyle, budget, and more before deciding whether to buy or lease a new car of your choice.