Leasing vs Buying new car: What’s best for you?

One of the perks of adulthood is being able to drive a car. With that perk comes the decision about whether to buy your car or lease it. Both option come with benefits as well as drawbacks; and before making such a big financial commitment, there are a few things that need to be taken into consideration. To settle the ongoing argument of leasing versus buying a car, here are a few pros and cons for both.

Leasing

Car leasing has gained significant momentum these past few years, and we can see why this method of acquiring a car might be attractive to a lot of car enthusiasts. Do you get bored of your car after a while and long for a new one? This option enables you to get a new set of wheels after the lease on your old one expires. So if you’ve asked yourself this question, “should I buy or lease a car” at any point in your life, and you like moving with the trends and having the latest model, then leasing is the way to go for you.

Compared to buying a car, leasing typically carries a lower amount you need to pay monthly. People who might be having a bit of a financial constraint can opt for leasing a nice car rather than buying one. The down payment is also considerably less, so you don’t need to worry about seeing your bank balance wane.

Leasing typically offers a 3 year warranty period on most new cars; so if you decide to take out a 3 year lease on a car, you don’t have to worry about the cost of maintenance and repair coming out of your pockets; much of it will be covered by the warranty. Finally, people using the car they lease for business purposes may get tax advantages.

However, of course there are certain cons to leasing as well. At the end of your lease, you have to return the car. So you don’t get ownership of that vehicle even after making payments each month, and you have to keep on making payments all your life till you decide to actually buy one.

There is also the matter of less flexibility, which might displease those car enthusiasts who like to customize their cars. Many of the lease agreements require you to revert the car back to the condition it was leased in, so you can say goodbye to your dream of tuning that engine, or modifying the suspension on the truck. You also have to keep the mileage in check; if you drive over your allocated miles, you’ll have to pay an extra amount every month.

Buying

In the great debate of leasing a car versus buying a car, there are many who always opt for the latter. Buying is certainly the more attractive option to those who are looking for a long term commitment.

The most attractive advantage when buying a car is that you get to be the owner of it when you’re done with the payments; which means that until you decide to buy a new one, you don’t have to make any more payments! Secondly, you’re free to customize that car however you like. That appeals to those who prefer to modify their cars according to their preferences.

Another advantage of buying is that you don’t have to worry about the mileage; drive to your heart’s content to show your new vehicle off, no one’s stopping you!

In the long term, leasing a car costs more than buying one. The down payment might be bigger when buying, as well as the monthly payments, but eventually the car is yours to keep. With leasing, once your contract is over, you have to start the payments all over again for a new automobile, a reality that dissuades a lot of people from going for that option.

There are cons to buying a car too. For one, the monthly installments are higher. For someone not so financially strong, this would be a huge deterrent. Also, it requires a considerable down-payment.

Another con to consider in the car lease versus buy debate is the fact that the warranty runs out sooner. This can be a frustrating factor when you want to get some repairs on your new car after your warranty expires.

In the end, the solution to the car lease versus buy conflict lies in what your preferences are. If you’re looking for a long term vehicle that you feel comfortable with, then go for buying. For those looking for the thrill of driving away with a new car every few years, leasing might be the best option.

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