Buying vs. Leasing: Consider the Benefits of Both
The Benefits of Buying a Car
- Investing, Not Renting: When you lease a vehicle, you’re really only renting it. When you buy, each monthly payment goes towards making the vehicle yours. When the loan is paid, you’ll be driving without monthly payments.
- Not Driving Restrictions: Most leasing deals put a limit on the number of miles you can drive each year, and the charges can be pretty steep for every mile you drive over that limit. This isn’t something you’ll need to worry about when you buy.
- Modify As You Choose: As well as restricting your mileage, lease deals prevent you making all but the most minor changes to the vehicle. Again, those restrictions don’t apply when you buy.
- Ongoing Flexibility: When the car is yours, you can sell it whenever you want. You can also use it as a trade-in for your next vehicle.
The Benefits of Leasing
- Reduced Payments: Leasing payments only cover the amount a vehicle’s value depreciates over the term you have it, so your monthly payments, as well as your initial down payment, will be lower than with buying.
- High-End Technology: Cars are getting more efficient and treated to state of the art technology. When you lease, you change vehicles every three years or so. As such, you’ll never be too far behind the latest technology.
- Warranty Coverage: Most new car warranties cover the same period as the leasing term, usually three years. Instead of worrying about being faced with large out-of-pocket charges, you’ll know the warranty has your back.
- Less Hassle: Ultimately, it’s a lot easier to bring your lease back to the lot and pick a new model than it is to go through the selling process.