Many people find it dreadful but this is a topic that needs to be considered very carefully before purchasing a car. For the moment, those who want to give up riding the public transport and become independent have to decide between buying a car and leasing it. Which one can prove out to be a better option for one’s needs?
Before deciding, one has to take into account the differences and analyze the advantages and disadvantages.
Buying a car – it’s great because:
- you don’t have to worry about the mileage; you can drive as much as you’d like.
- you get to feel the pride of owning a car and perform any type of modification you please. If you want a pink and yellow Monster Truck, go for it!
- you get to actually keep the car at the end of the financing period. No bank or dealership will threaten to take it.
- you can sell the car whenever you want. The decision is yours and yours only.
- new cars depreciate approximately $3,000 every year during the financing (between 15-20%).
- you have to pay higher down payment and monthly payments.
- after the warranty expires you are the one who has to pay the maintenance costs.
Leasing a car – why should you do it?
Because you get:
- lower down payments and a lower monthly payment.
- to drive a new car every couple of years.
- no hassles when it comes to the trade-in available at the end of the lease;
- to pay taxes only on the portion of the car that you finance.
But what you don’t get is:
- a car at the end of the lease.
- unlimited mileage (you are restricted to 12,000-15,000 miles/year and the extra miles are always paid at the termination of the lease).
- an easy way out if you want to change your driving needs.
- a clear-cut lease contract.
Do you have experience in this field? Tell us about it!