Buying vs. leasing a car may be rather a hard-solving problem for you, especially if you do not know the pros and cons of each of the processes. Thus, for you not to be challenged with such a dilemma, youd better see what are the advantages and disadvantages of both buying and leasing.
Advantages of leasing
One of the main advantages of car leasing is that the lessees do not have to pay any down payment at all. If, however, there IS a down payment, it is so low an amount that it is quite affordable for the lessee.
Another considerable advantage of leasing a vehicle is that you will have to pay lower monthly payment than if you bought the same vehicle.
Those people who are fond of brand new luxurious vehicles may choose the option of leasing, as it gives them the chance of driving a dream car for over 3-4 years. After this period most lease deals are over and the lessee can sign a new contract with new terms and a newer model.
As you drive the vehicle for about 3-4 years only, the manufacturers warranty covers all the period and accordingly, you do not have to worry about maintenance and repair costs.
Disadvantages of leasing
Te first and the saddest part here is that you never own the vehicle, as you have to give it back at the end of the lease period.
If you decide to terminate your lease agreement early, then youll have to face early termination penalties
You are not allowed to drive more than 15,000 miles yearly, otherwise youll have to pay penalties for it.
Now, lets look at the advantages and disadvantages of buying a vehicle to be able to easily resolve the dilemma of buying vs. leasing a car.
Advantages of buying
The vehicle is yours! You do not have to pay any penalties or fees for excessive wear and tear or miles.
You can trade the vehicle in or just sell it whenever you want.
Disadvantages of buying
You have to pay a considerable down payment and high monthly payments as compared with leasing.
If the vehicles manufacturer warranty period has expired youll have to either purchase an extended warranty or pay for the repairs yourself.
These are the main advantages and disadvantages of buying and leasing. I hope they will help you solve the problem of buying vs. leasing a car.