We all have places to go and a limited amount of time to get there. Having a reliable car in our driveway is one of the great American dreams of both yesterday and today. We all need to know that when we need to get to work, or the store, or to a friend’s house, our car is going to get us there. The biggest question is how to acquire that car. Leasing or buying are the two most popular options. Let’s have a look at both of them.
What are the advantages of leasing?
In order to lease, please be aware that you need better credit than if you purchase a car. Ideally, a leaser will have at least good credit. If you meet that requirement, then you can benefit from the many terrific elements of leasing.
1. Low monthly payments: Lease payments are lower than monthly payments. Figured into the monthly lease payments are residual percentage, money factor, and the overall price of the car you’re leasing. More expensive cars will require a more expensive monthly payment.
2. Fewer costs up front: Down payments are either not required or are very small for a leased car. Compare this to sometimes outrageous down payments for a purchased car. If you are short on cash up front, consider leasing.
3. Lower repair bills: The majority of leased cars are still covered by their warranty. What this means for you is that if the car has trouble, you’ll be able to get it fixed for free or for less money than if it wasn’t covered by warranty.
4. More flexibility: The quality of car you drive is very important to some people. If you’re picky about cars, leasing gives you a much better chance of obtaining a more expensive, more beautiful car than buying does. While the car won’t ever be yours, you’ll use it just like it’s yours while you’re in possession of it.
When is buying a better idea?
Some customers will be better suited to buying cars.
1. Credit troubles: If you don’t have good credit, there’s a better possibility to buy a car. Don’t give up hope if you can’t lease.
2. Freedom to change the car: If you want to be able to modify the car’s paint, interior, or exterior, then leasing might not be for you. When you buy a car, you can do with the car whatever you wish because there’s the concept of ownership on the horizon and dealerships respect this concept.
3. Freedom to drive: Leased cars require you to drive a certain number of miles per year, as worked out with your leasing agency. If you’re a person who loves to drive and explore the world or needs to use the car for long commutes or vacations, then leasing might not be the best option for you.
Leasing rules the day
Despite these few circumstances where buying might be the best choice, leasing rules the day most of the time. If you’re credit is good, you appreciate quality in a car, and you need to save money in the short-term financial future, then leasing is going to be your ideal option. Buying will come later and remember, even if you lease a car, you can work out a purchase arrangement after the lease if you leave that option open. Leasing is a very flexible option with terrific benefits, so give it a chance to work its magic in your life.