Which is the Best Lease or Buying a Car? Which is the Best Lease or Buying a Car?: We live in strange and uncertain times. Even in the best of times,
Which is the Best Lease or Buying a Car?
Which is the Best Lease or Buying a Car?: We live in strange and uncertain times. Even in the best of times, getting a new car is not an easy decision. All the uncertainty of contemporary life adds a dimension of financial responsibility.
If your question is – which is better: renting or buying a car, then, unfortunately, the answer will be: it depends. The best option for you depends on many factors specific to you and your life and financial circumstances.
Keep reading to know how these two options differ and choose the one that is best for you.
Renting a Car – Pros and Cons
When you lease a car, you essentially rent it from the car dealership for the duration of your lease. Consider renting him a room or apartment.
You are free to use your car as if you were renting an apartment, but – as if getting out of a car lease before the premature termination of the rental agreement is not an easy task. Sure, you can do that, but not without paying additional fees and penalties. So you should be sure that this type of arrangement works for you before signing the lease.
If you are short on cash but need a new car immediately, leasing a car is a better option for you. There are no up-front costs associated with renting a car in most locations, so you can get a new car quickly and easily. On top of that, leasing a car costs less per month compared to the monthly payments you would make when buying a vehicle.
On the other side of the spectrum is the fact that you don’t have a leased car. So, even once the lease is done, you will have two options – buy that car at a predetermined price or simply return the vehicle and lease on a new car.
If you want to drive the best and latest car model every couple of years then this option may be attractive to you. Also, consider the significant leaps automakers make in technology features, driver safety, and fuel economy with each new model. When you think about all these things, renting a car might not be such a bad option.
However, car leasing also comes with some limitations. The most important may be the predetermined mileage limit. Depending on the dealer this limit can range from ten to fifteen thousand miles per year. If you don’t drive much, this shouldn’t be a problem for you. But if you exceed this limit, expect to pay extra for each additional mile.
Buying a Car – Advantages and Disadvantages
Since you do not own the car, you are renting; You cannot modify it in any way. So once again, if you want the option of driving a new and reliable car every couple of years, this shouldn’t be a deal breaker. But it’s worth considering whether these things are important to you.
Almost every car lease contract comes with an “excessive wear and tear” clause. It stipulates that you have to pay for any damages caused by reckless driving.
As you can tell, both of these terms are difficult to define and highly subjective. However, when you own your own car, you don’t have to worry about every little dent or scratch that appears on your vehicle because it is your property.
As you read above, terminating a lease early is a complicated and often expensive process. Meanwhile, if you own the vehicle, you are free to sell or trade it at any time.
That’s the mainstay of car ownership – you own the car, but the monthly payment is higher. Buying a car also requires a more substantial down payment. On top of all that, while many leases come with insurance and repair programs that make these things much cheaper, you’ll be paying for all of those things out of your own pocket.
Now you must decide which is more valuable – the pride of owning a car and the ability to drive and modify it the way you like, even if it costs more, or renting a car with some inconveniences. In return for making some profit.