Buying vs. Leasing: Which is Right for You?
Owning a vehicle has never been easier. Gone are the days when you had to muster up a huge down payment to get yourself an automobile. Nowadays, almost every leading automobile manufacturer offers an array of financing options for its increasingly diverse clientele. This post will compare the benefits and downsides to two particular financing choices- buying and leasing to help you make the right decision.
Buying is suitable for people who want immediate and total ownership of their vehicles. This option would involve making a substantial down payment; however, you will be rid of having to make pesky, monthly payments. In fact, in the long run, buying turns out to be less costly than leasing the same. It also ensures that you pay the lower insurance premium.
A crucial thing to keep in mind is that if, owing to your financial situation, you take out a loan to make the down payment, then buying will cost you more in the long run than leasing. This is because usually, loan payments are much higher than lease payments, which are generally low.
Nevertheless, purchasing gives you great flexibility. Drive it how much ever you want, customize it whichever way you like, or simply sell it off when you desire so. If you have children or pets that ride with you frequently, then again, you would be better off buying since then you would not have to worry about incurring extra cost for any wear and tear.
Although leasing ends up being more expensive than buying in one shot, it is still a worthwhile option to consider if you cannot make a sizeable down payment all at once. Leasing gives you the freedom to use a vehicle without owning it outright. However, at the end of the lease, you get the choice to purchase the car if you feel like it. This option is also great if you like to keep changing your rides rather quickly.
Buying will tie you down for some years, but leasing allows you to drive new models more frequently. However, you need to keep making monthly payments along with ensuring you do not cross the mileage mark set and keep the vehicle in good condition.
At the end of the day, the golden rule is to keep in mind your daily vehicular needs and financial situation to decide between buying and leasing.