Comparing Costs: Should You Buy or Lease a Car?
Comparing Costs: Should You Buy or Lease a Car?
Are you looking for a new car and not sure which route to take? Before I was actually faced with the issue of purchasing a car about a year ago, I never even considered leasing. However, it can be a really great option if you are looking for the luxuries of a new car without the high monthly payments. Take a look below at some of the advantages and disadvantages of both leasing a car and purchasing a car.
Edmunds.com has two great tools to help you see exactly how car buying stacks up against leasing. Check out the Auto Loan and Auto Lease calculators. These are both great estimating tools to assist with making the best choice for your lifestyle.
Purchasing a Car
Advantages
• If you take good care of your car, your investment in the purchase will be worth it in the long run.
• You can modify your vehicle however you would like.
• No mileage restrictions.
• Flexibility of selling your car whenever you choose.
Disadvantages
• Monthly payments tend to be higher than leasing.
• Higher down payment than a lease is required. .
• Once your warranty expires, you are responsible for all repairs.
• Cars can depreciate in value over time.
Leasing a Car
Advantages
• Lower monthly payments.
• Lower down payment.
• Drive a brand new car.
• Change cars/drive a new car every 2-3 years.
• Spend less money on maintenance because of warranty.
Disadvantages
• You have to stay under a mileage amount, or get charged a fee if you are over at the end of lease.
• You can’t customize your car.
• You don’t own the car at the end of your lease.
Like I said previously, I ended up going with the decision of leasing a car vs. buying one. At the time of purchase, I was on a limited budget for payments and I didn’t want to worry about purchasing a used car that might require a lot of money for repairs. I couldn’t afford to purchase a brand new car, so for me leasing was a great choice! Your choice may differ, but it is always great to research and be aware of all the options before you make a huge decision like purchasing a car.
I leased my car through Honda, and there is actually a way to purchase my car once my lease is up if I want to keep it. I have about 2 years left but I am definitely considering it! I will definitely have to go check on some dent repair before returning my car though as normal wear and tear has occurred in parking lots.
