Is it better to buy or lease a new car? Paying for a new car can be one of the biggest financial decision you will be taking in your life. If you find the prospect of paying the full price of the car daunting, you can consider leasing. Before you make the choice, it is advisable to gain knowledge about the benefits of leasing vs. buying a car.
Benefits of Leasing a Car
Leasing is more appealing than buying a car due to its numerous benefits.
- The monthly payments are typically lower than an auto loan. This means you will be able to drive a better car for less money. You will be able to make the transition to a new car every 2 ? 3 years.
- Lower repair costs as they are included in the vehicle?s factory warranty. With a lease, you don?t have to worry about anything happening to the car, as you are completely covered with warranty.
- You will be able to drive a better equipped and higher priced car than what you may otherwise be able to afford.
- No trade in hassle at the end of the lease.
- Less sales tax is paid.
Benefits of Buying a Car
- Ownership of the car. This means you can drive as many miles as you want, as there is no excess mileage penalty.
- Customize the car in any manner you want.
- The car can be used as a trade in when you buy the next car.
- You have the option of driving the vehicle for many years to spread out the cost of buying.
- No risk of lease end charges.
- Flexibility to sell the car whenever you want.
Leasing is definitely cheaper in the short term but buying a vehicle is cheaper in the long term. Weigh the pros and cons before leasing or buying so that you are able to make the important financial decision easily.
