Pros and Cons of Purchasing a Car

Buying a car provides several advantages. The car owner does not have to depend on a bus or train schedule to get to work and can leave at any time. The car owner also can use the car for recreation, visiting campsites and distant cities where mass transit is not available. The main disadvantages of car ownership are its extra costs, including maintenance and insurance.

Short-Term Use

A con of purchasing a car is that an individual does not have to purchase a car to use one. Rental agencies allow a customer to use a car for a short period for a daily fee. Individuals also can lease cars. A lease allows someone to drive a car for a longer period, which may be several years, without paying the full costs of ownership for the car.

Purchase Price

Another con is that purchasing a car can be expensive. Buying a new car for cash can require the buyer to pay $20,000, or more, up front. A used car will be cheaper, but the used car buyer may need to pay for additional repairs to fix the wear and tear on the vehicle. If the buyer needs to use financing to purchase the car because he does not have the full cash purchase price available, he also will pay additional interest payments to purchase the car.

Lease Responsibilities

A benefit of purchasing a car is that the owner receives full rights to use the car after the purchase. A lease agreement often includes limiting clauses, such as that the driver cannot drive the car more than 10,000 miles each year or that the driver must take the car to the dealership for scheduled maintenance according to manufacturer recommendations. The lessor may charge the driver additional fees for not following these contract terms.

Long-Term Benefit

Another benefit of purchasing a car is that once the owner pays off the car loan, the owner can keep using the car, as long as the car still operates. If a person takes a train or bus, he will always have to purchase a ticket to travel. When a driver leases a car, the driver has to return the car at the end of the lease, unless the driver has the cash available to purchase the car.