So you’ve decided to get a new vehicle. Having a vehicle is practically a necessity in this country, especially if you don’t live in a city where the public transportation options are adequate. When getting a new vehicle, you’ll have two main options: buying or leasing. Buying a vehicle, whether you finance it or not, means that you’ll eventually become the owner of that vehicle, whereas leasing a vehicle means that you have to give the vehicle back after the lease period is up. Basically, a lease is like a long-term rental. Both options have their pros and cons, and you should make your decision according to your financial needs as well as your wants.
5 reasons why you should consider buying a vehicle:
The following are 5 reasons why you should buy a vehicle, whether it's outright or via financing options.
1. The money you are spending every month is actually going towards the ownership of the vehicle. If you lease a car, you have to give that vehicle back at the end of the lease period and you’ll have nothing to show for the money you’ve put towards the lease.
2. You can sell your vehicle if you need the money.
3. Because you are the owner, you can modify the vehicle any way you want. This means that you can install a new sound system, install a new GPS system, give your vehicle a new coat of paint, and more. You can’t do any of this if you are leasing your vehicle.
4. When you lease a vehicle, you may end up being subject to a number of penalties. For example, if you exceed the maximum mileage of your lease’s terms, you’ll have to pay a fine.
5. Over the long run, buying a vehicle is less expensive than leasing a vehicle. After a certain amount of time, you’ll have paid off your vehicle, whereas if you keep leasing, you’ll eventually eclipse the price of buying a vehicle.
5 reasons why you should consider leasing a vehicle:
While there are many benefits to buying a vehicle, there are several advantages to leasing instead as well. The following are 5 reasons to lease a vehicle instead of buying.
1. Leasing will cost less over the short term. This is because monthly payments are lower than it would cost to finance a vehicle and there’s usually a lower down payment as well.
2. Leasing allows you to drive nicer and more expensive vehicles than you would be able to afford if you were to buy one outright.
3. Leasing lets you drive the newest models – you’ll never be stuck with an out of date vehicle since you can lease a different vehicle every couple of years.
4. If you lease a vehicle for three years, then the factory warranty on the vehicle will usually cover most repairs. A lot of money can go into repairs when you own a vehicle, so not having to worry about the cost of repairs is a huge advantage.
5. Trying to get a new vehicle is nowhere near as big of a hassle if you’re leasing. If you own a vehicle, you’ll have to deal with trying to find a decent trade-in offer or selling the vehicle before you can get a new one. If you’re leasing, you can just wait until the end of your lease period and then choose to lease a different vehicle.
There are a lot of advantages as well as drawbacks to both buying and leasing. This means that you need to carefully consider your needs before you make a choice between the two.