Benefits of Leasing Vs. Buying a New Car

Looking at cars is a big deal. You are either spending a lot of money to buy a car or committing to a lease period. Either way, it is a decision that you shouldn’t take lightly. Today we are going to explore some of the benefits of leasing a car and compare it to those of buying a car.

Benefits of Leasing A Car

Lower Monthly Costs

When you are leasing a car you are essentially taking the car on a long term rental, you aren’t paying full price for the car. In most cases this means you will have a lower monthly rate than if you were to buy the car.

You Don’t Have To Try To Sell The Car

At the end of a lease you give the car back to the dealership or have the option to buy it from them. You don’t have to try and sell the car when you no longer want it. Car sales can be difficult and you often don’t get the full value back.

Less Car Troubles

Typically leased cars are driven in the first few years of its life. These years are when the car has less mechanical trouble thus there is less chance of a breakdown.

Warranty Coverage

Those who lease their cars will always have access to a vehicle warranty. With the exception of some parts this will ensure that you don’t have to pay much in the way of maintenance even if you do have a problem.

You Get A Better Vehicle

When you lease a car you can afford to drive a car that is higher priced and/or better equipped than you would otherwise be able to buy. This is a big reason that people opt for leasing a car.

Business Benefits

For business owners that lease cars you can get tax advantages. This can be very helpful for businesses that are looking for ways to save money.

Benefits of Buying A Car

The Car Is Yours

Once you have paid off the car it is yours. That being said, until you make all of your payments, the car is still property of the bank. 

Monthly Payments Stop

The whole time that you lease a car you have to pay monthly payments. If you lease another car after the lease period is up, you just have more monthly payments to continue on.

Modifications To The Car

When you own your car you can make modifications to the vehicle as you please. Those who lease a car typically do not have this benefit. 

No Mileage Limits

In most cases, your car loan will not dictate how many miles you can drive every year. A car lease on the other hand, limits how many miles you can drive your car. If you go over that limit you will find yourself having to pay fees.

Trade-In Value

As you probably know, your car loses value when you drive it off the lot. That being said, you do get a trade-in value for your car when you go to buy your next one. This can help you a lot when it comes to affording a car that you want.

Insurance Premiums

In many cases you will have lower insurance premiums if you own your car. Your insurance company doesn’t have to work with the lease holder and thus can more freely decide what to do if you file a claim.

Conclusion

Getting a car is a big investment. It is important to take a moment at the pros for leasing a car and the pros of buying one. After that you can make an informed decision about which route you want to go. There is no one right answer that we can give you because it depends on your specific needs and desires as to which route is best for you.

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