Leasing vs Buying a Car Pros and Cons
When you need a new car, there’s one question you have to confront: do you want to lease or buy a car? To arrive at a decision one should weigh both sides of leasing vs buying a car pros and cons.
But the truth is, the decision is a very personal one. We’d like to help you out by telling you both the pros and cons of both sides.
Leasing a Car
- Monthly payments are often lower than what you would have to pay otherwise.
- The future value of the car isn’t important to you.
- At the end of the lease, you have the ability to walk away much easier if you decide you want a different one.
- You’re not as responsible for payments as you would be with loan payments.
- You have to return the car at the end of the lease or buy it.
- If you want to terminate the loan, it can often be expensive.
- Most leases limit the number of miles that you can drive.
- Leases will hold you responsible for any wear and tear, and you’ll often have to pay extra charges.
Buying a Car
- You get to keep the car for as long as it works and/or as long as you want it.
- If you dislike the car later for whatever reason, you can sell it.
- The cash value of the car is yours.
- You don’t have to worry about the number of miles that you drive.
- You have to pay more up front.
- Monthly payments are higher than what you might pay when leasing a car.
- If the car is damaged, you’ll have to pay to buy a new one and won’t be able to sell the car to help with the cost.
- Dealing with selling or trading a car is often stressful, and can be hard to get your money’s worth.
Should I lease or buy a car?
There are many things you should consider when trying to decide whether you should buy or lease a car. Some of these things include:
- How much you’re willing and able to spend up front
- How much you’re willing and able to spend monthly
- Whether or not you want to be able to customize your car
- How often you drive/how much mileage you’ll be using
- How accident prone you are
- Exactly how rough the roads you drive on are
- Whether you’re the type to drive a car until it breaks or get bored and move on to something else.
Ultimately, though, the decision between leasing vs buying a car pros and cons is up to you. So, as much advice as we can give, it’s a personal decision that you will have to make based on a number of factors, some of which might be completely unique to you.
But no matter what decision you make, credit will ultimately be a part of it. And if you’d like help with that, I hope my website can give you some of the information that you need.
Get Control of Your Credit With Our Free Ebook
* indicates required