There are many decisions to make when it comes to wanting a new vehicle. One of the first considerations should be whether you lease or buy the vehicle. There are advantages and disadvantages to both.
When you purchase a vehicle, you instantly have control over the title. You also have the power to determine many things including whether to trade, sell, keep, or give away the car. Modify away because you can do anything you want regarding it because it’s yours.
It’s usually less costly when you lease a car. It’s for a specific amount of time and there are limitations to what you can do to the vehicle. When your lease is over, depending on what’s outlined in the contract, you can return it or buy it for a certain price. This article will look at the pros and cons of leasing versus buying a vehicle so you can make the most informed decision.
Advantages to Leasing
Those monthly expenses add up. For many, because of this, leasing a vehicle is a cheaper solution than buying one. Many times, the down payment is lower, and drivers can get a luxury vehicle they thought wasn’t affordable because they chose to lease it. Some people get addicted to getting a brand-new vehicle every time the lease is up. It’s also a great way to keep up with the technological advances and improved safety features of newer vehicles.
You don’t have to concern yourself with reselling or dealing with getting rid of the vehicle because you either buy or return it once the lease is finished. Because of this, some people find leasing to be less stressful and hassle-free than buying. If you’re using a business vehicle, you might be eligible for tax deductions.
Disadvantages to Leasing
The number one con to leasing a vehicle is that you don’t own it. There’s no investment or equity building when you make monthly lease payments. There are also restrictions when it comes to mileage allowed and if you want changes or modifications done to the vehicle.
Guaranteed, there will be additional fees associated with that. Other costs can include initiation and cancellation fees as well as a cost for an abundance of wear and tear on the vehicle.
Advantages to Buying
If you like to be in complete control of all aspects of your vehicle, buying is the best option for you. There is no time limit on how long you can have the vehicle. It’s yours to do what you want. Improving upon or modifying the car is at your discretion. There are no additional fees when it comes to wear and tear or mileage of the vehicle either.
You can get it serviced or repaired at your leisure. When you look at long-term, it’s less expensive to purchase a vehicle and keep it for as long as you can. You also can get tax deductions if you use your vehicle for business purposes. Just make sure to keep thorough paperwork on it.
Disadvantages to Buying
Up to twenty-five percent depreciation occurs within the first few years of ownership. However, if you’re the type of driver who purchases a vehicle and keeps it for years, then that wouldn’t apply to you. The average amount to drive a new vehicle comes in over ten thousand dollars per fifteen thousand miles. Other than that, the usual costs apply including insurance, fuel, and overall maintenance.
Whether you decide to lease or buy a vehicle outright, it’s always important to take good care of your car. This includes getting your car serviced regularly. When you take your vehicle to an auto dealership service department or auto repair shop to be serviced, the automotive service company will often use disposable paper floor mats to protect the car.
Custom Printed Paper Floor Mats are a popular item used by automotive service companies since they serve the dual purpose of protecting the vehicle while also promoting the service company. This will encourage repeat business. Custom Printed Paper Floor Mats can be personalized with your auto dealership or repair shop’s name, phone number, message, and company colors.
Let’s break it down one last time. To lease or to buy?
Leasing is a very appealing choice if you require smaller monthly costs. You can also acquire a new vehicle with advanced technology features every so many years. Out-of-reach luxury makes and models become possible with leasing as well. At the end of the lease, there is no need for extra work like selling or disposing of the car.
If you decide to buy a vehicle, it will be yours right away (or equity building will happen as the vehicle’s loan is paid off). You will be completely and utterly in charge of everything to do with your car. This includes costs for modifications, services, and repairs that can be done on your own time. Whenever and wherever. The power is in your hands. Drive excessively or change the vehicle’s appearance if you want. Dump it, give it away to a friend, or keep it.
Although industry experts believe buying a vehicle (rather than leasing) is the smarter financial decision in the long term, in the end, your choice between leasing or buying a vehicle will hinge upon your needs, wants, financial position, and lifestyle. Weigh your options honestly and the correct decision will be obvious for you.