If you are looking to get a new car, but are unsure if it is better to buy or lease, here are some pros and cons of buying vs leasing a vehicle to help you figure out what option is right for you.
Leasing a vehicle
One of the primary reasons people lease a vehicle instead of buying is because of the lower amount of money it takes to lease a vehicle. Usually, leasing a car means you have a lower monthly payment on the car, compared to actually buying the vehicle. Not only that, but you generally won’t have to save up as much money for a down payment when you lease, as they also tend to be lower. Leasing is a pretty good option for those who don’t need to drive a whole lot, but still need a vehicle for shopping and traveling to and from a nearby job.
So what do you have to watch out for when you lease a car? Well, the wear and tear, for one. Since you are basically ‘borrowing’ the vehicle, it isn’t actually yours, which means you are held accountable for the scratches, stains, and small dings that come with driving a car for a long period of time. You also are stuck with that car until your contract expires, and the miles you put on your leased car are often limited.
[ READ MORE: Buying A Used vs New Car ]
Buying a car
On the flipside,if you actually purchase the vehicle, you won’t have to worry about the miles or the wear and tear, because it is yours. You make all the decisions on the vehicle, and you don’t have to worry if you go over your miles, so you can go on that road trip without worrying. You’ll have the added benefit of knowing that if something happens to the vehicle, you won’t have to deal with the fallout when it comes to the leasing contract. Those who travel a lot and get a lot of wear and tear on their cars may want to consider buying instead of leasing.
However, buying a car tends to be more expensive, especially if you are buying a new car. You’ll need more money for the down payment, and more money on your monthly car payments.
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