If you are in need of a vehicle to drive, you might be looking into your options. Both buying and leasing can have their benefits,
The Pros of Leasing vs. Buying
First of all, before you buy a car, you may want to consider the many benefits of leasing, including:
- You do not have to have as much money to get started. One common problem with buying a car is having to come up with the down payment in order to get approved for financing. When you lease, you only have to come up with an acquisition fee, a security deposit and other minor taxes and fees. This can help make it much easier for you to gather up the money that you need to acquire a vehicle.
- Monthly payments are lower. A lot of people want to avoid paying a high monthly car payment but do not have the money to buy a car in cash. Leasing can be a good option, since monthly payments are usually reasonable.
- Drive a nicer car. You may find that you are able to drive a much nicer car if you choose to lease rather than buying. The monthly payment will be more affordable than the monthly payment if you were to purchase an equivalent vehicle. Plus, the car should be brand new when you lease it.
- Swap cars often. Are you someone who gets bored with driving the same car for longer than a couple of years? Do you like to take advantage of the newest and best technology? With leasing, you can lease a different car every couple of years, so you’ll never have to worry about getting bored.
- Avoid repair issues. The car that you lease should be new and should be under the manufacturer’s warranty. Because it will be new, you should not have to worry about repair issues much at all. If you do find that the car needs to be repaired, you should not be the one who has to come out of pocket, since you can count on the warranty to cover most repairs.
The Cons of Leasing vs. Buying
Leasing is a wonderful option for many drivers, but it’s not the right choice for everyone. These are some of the disadvantages that you will want to know about before signing a leasing contract:
- You will be restricted on mileage. If you drive more than an average of 12,000 or 15,000 miles per year, depending on your lease contract, you might find that a leasing option is not right for you. This is because you will generally be restricted to only putting a certain number of miles on the vehicle each month while it’s in your possession, and if you go over this mileage, you should expect to have to pay a per-mile fee that can really add up for people who have long commutes or who otherwise drive a lot.
- You won’t own the car. When you get finished making your last car payment on a purchased vehicle, the vehicle is yours. This is not the case with a lease; instead, you’ll have to return it. In many cases, however, drivers can buy vehicles at the end of the lease period, so this may be something that you will want to look into if you like the car and would like to continue driving it rather than leasing or buying another vehicle when your lease contract ends.