When you are cautious with your money you may consider all angles of any investment you might be making. With this in mind, you want to weigh the pros and cons before you make a decision to purchase or lease a vehicle. This overview can help you make the decision that will work best for your needs.
Here are the pros and cons of leasing versus buying a car.
- Make and Model: Leasing can make affording luxury model such as 2017 Lexus NX-200t a lot more realistic for your budget. You can often lease a high end model for far more reasonable prices even when compared to a lower end model you out and out purchase.
- Mileage: One of the most seriously underestimated issues with leasing is associated mileage. Leases have a maximum amount of miles that you can drive the car. Anything above that amount you will end up paying for and this can really add up. Therefore leasing is only advisable if you do limited driving and are not, for example a sales person on the road all day or someone who loves a road trip every weekend.
- Payments: You will be expected to pay some up front fees and a down payment when you lease. A higher down payment will lower your monthly payments. In general the cost of a monthly lease will be far less than a car payment to own.
- Ownership: When you lease your car is not your property. Many feel this is one of the downsides of leasing. However, if you consider things such as wear and tear of a car as well as depreciation is ownership that important? Many people lease a car every two to three years and get a new model and new lease. They find this enjoyable as they never have to worry about costly maintenance and repair associated with car ownership and they have a brand new car to drive every few years. There are also buy out options available. However, this requires a lump sum payment.
- Make and Model: When purchasing a car you may not have access to higher end cars as the monthly payments may be out of your reach. You can choose to buy a brand new car but last year’s model for a more affordable choice.
- Mileage: When you own a car you can drive it as little or as much as you like with little concern of additional fees associated other than wear and tear and fuel costs.
- Payments: You will make a down payment and then monthly payments based on the interest of the loan. You do have the option to shop around for the best deal on your monthly payments.
- Ownership: Many people prefer purchasing as they feel their money is going towards a purchase and ownership at the end of their car payments whereas with a lease some view this as making payments without anything to show for it at the end of the lease.
You can consider these points when it comes time to buy or lease your next vehicle.