Should You Buy or Lease Your New Vehicle?

Should You Buy or Lease Your New Vehicle?

The number of car buyers has grown exponentially in the past few years. Many new trends have emerged in the industry to facilitate buyers for making better choices. In this regard, leasing a car has also become a lucrative option for those looking for short-term ownership to fulfill their driving requirements. It does not surpass the perks of buying a car but it has its own benefits. Similarly, the decision to buy a car also comes with a lot of merits and demerits. To make an informed decision, you should evaluate the differences between these two choices on the parameter of their advantages and disadvantages. Here, these factors are discussed to save you time.

Why You Should You Lease a Vehicle

The most important benefit of leasing a vehicle is the massive cost and time savings. You don’t have to indulge in the long process of the loan application and make arrangements for the down payment. No upfront costs are required in this process. You can drive the vehicle of your choice with a smaller monthly payment while maintaining the lease. The monthly payments under a lease agreement are much lower when compared to the monthly installments on an auto loan. After every two to three years, you can drive the latest vehicle integrated with advanced features. The comprehensive warranties offered on this vehicle make it a more lucrative option.

Why You Shouldn’t Lease a Vehicle

The most important reason going against this option is the limited ownership of the vehicle. You do not own the vehicle and cannot customize it as per your preferences. There is also a restriction on the total miles that can be covered over the term of the lease. If you want to end the lease before its expiry, you may be charged a heavy penalty. Also, if there is major wear or a huge mechanical failure inflicted on the vehicle, you have to bear all the responsibility for its repairs.

Why You Should Buy a Vehicle

The joy of owning a vehicle is included in the cost of buying a car. It can be a satisfying experience to drive in a vehicle that belongs to you. There is no need to check the miles every time you set out for a journey. Also, you don’t need to worry about nearing the end of your lease agreement. The vehicle remains your asset and you build equity for buying another one. It can also fetch a decent price in resale or trade-in. You can customize this vehicle in any way that you prefer. With proper comprehensive coverage, it becomes an intelligent selection for the long term.

Why You Shouldn’t Buy a Vehicle

There are many benefits of buying a vehicle but they may be overshadowed by the heavy costs of ownership. These include upfront costs like down payments and registration charges along with taxes. Also, the value of your car will be highly affected by the depreciation incurred on it as soon as you drive it off the lot.

Consider all these points and make an informed decision that suits your requirements.