If you need a new car, you might be seeing great deals on cars for sale and cars for lease. Sometimes it can be hard to decide what is the best decision for you. It really is a personal decision but there are some things to know before you decide. So Buy vs Lease.
Leasing a car is like renting a car, kind of. You are paying for the car, each month, for the time you have it. Most lease agreements come in a certain time frame. When you are leasing a car, when the time frame of the lease is up, you either return the car or decide to buy it or lease it again.At that point, you can decide to lease a new car with new features. That is nice if you like to get a new car every few years.
What is nice about a lease, most of the car repairs start once the car starts getting higher in miles and most of the repairs that happen during the lease fall under the warranty. This helps keep your car maintenance costs low.
The monthly costs of leasing a car is usually lower. The monthly lease cost is usually half the price of buying a car. Also, it is usually a much smaller than the down payment when you are buying a car.
If you are someone who wants a new car with the newest features every few years, do not drive a large amount of miles each year and want a lower payment each month, leasing a car might be a great option for you.
The downside of leasing a car is that when you are done your lease, you do not own the car. You have to give it back or sign a new lease. Also, with a lease, you are locked into only driving a certain amount of miles or else you have to pay more. If there is any body damage to the car, you are responsible for paying for it. You must always carry full coverage insurance on the vehicle because it is always the property of the dealership/bank.
When you are buying a car, you get the car in the end. This is nice because your money is going to having something you get to keep. When you buy a car, you can drive the car as much as you want. There are no restrictions on how many miles you can put on it. You do not have to worry about cosmetic damage to the car, except that you want it to look pretty, because it is yours and you are not being charged extra for it. Also, while you have to have full coverage insurance while you are paying on your loan, once the loan is over, you can switch to a lower cost insurance because the car belongs to you.
The downside to buying a car rather than leasing, you are stuck with the car for a while. Once you pay the car off and receive your title, you can sell it, but it is always worth less than what you have paid for it. You also have to find a buyer or take a trade in value from the dealership. As you put more miles on the car, you are going to run into more repairs that it needs. When you are buying a car, the down payment and monthly payments are higher than when you lease a car.
If you are someone who wants to buy a car and keep it for a long time so that you don’t want to have a car payment all the time, buying a car is a better option for you.