Procuring a new car is a rather cumbersome process, which is often started by the hassle and bustle of doing research. After surveying several feasible options, the prospective owner is then faced with perhaps the most challenging dilemma, whether to lease or purchase an automobile wholly. These two options have their pros and cons, and it is imperative for the interested parties to be well acquainted before making the ultimate decision.
When one buys a car, they are given full autonomy of the vehicle and can conduct any operation on it. In the case of leasing, the automobile is rented out, and the renter is expected to abide by a prerequisite set of rules. Typically, the client pays a sizeable amount as deposit, followed by a series of monthly installments until the agreement expires. At the end of the lease contract, the leaser is obligated to return the car to its rightful owner.
Benefits of Car Leasing and Why You Should Opt For It
Cheaper Up-front Costs
When you buy a car, one is expected to pay the whole amount at once or pay a significant portion upfront followed by monthly installments. On the contrary, when you rent a car, the only initial requirement is the first monthly installment accompanied with a few miscellaneous charges. Therefore, leasing is a more cost-effective option than buying, especially the initial stage.
No Disposal Hassles
Disposing of a used car may be a challenging task. Usually, the vehicles are undervalued by the interested parties, making it difficult to pass them on. In the case of leasing, one does not have to seek a car with a high resale value, since it will not be your task to sell the vehicle after it has served its purpose. Contrariwise, the only obligation in leased cars is returning it to its proprietor while it is in a sound state.
You can punch above your weight
Since leasing has low to zero upfront costs, it is possible to rent a car that would be otherwise too expensive to buy. Customers can, therefore, drive the vehicle of their dreams, even though it is for a limited period.
When a car is leased, it is still under the ownership of the leasing company. For this reason, its maintenance and service cost are covered by the manufacturer’s warranty. This relieves the driver of additional charges, as most repairs are conducted at the expense of the developer.
Lower general costs
Most people usually source loans from financial institutions to fund the purchase of cars. As expected of any loan, monthly repayments are mandatory. Normally, monthly dues are lower than what banks charge as monthly repayment, which is another upper hand hat renting has over purchasing.
Though leasing has a myriad of merits, it has its disadvantages, with the most outstanding being the lack of full, autonomous over the control of the vehicle. Another con is the fact that you are constantly watching the car’s condition because you are expected to maintain it at a certain level when you return it to the rental firm. However, the merits outweigh the demerits, and leasing has the upper hand on buying. Therefore, after weighing both sides of the coin, the writer would incline towards leasing as it bears more advantages than conducting a full purchase. The ultimate choice, however, is left to the owner.