When you are in the market for a new car, both leasing and buying might be options for you to consider. Before making a decision as to which method you will use to acquire your car, you have to look at the pros and cons of each strategy.
Pros of Leasing
The major advantage of leasing a car is that your monthly payment will be smaller than if you purchase. This is especially true if interest rates in the market are high. Another advantage of leasing a car is that you do not have to worry about major repairs. If something happens with the car, you simply take it to the dealership. At the end of your lease, you can also turn in the car and get another one if you want. You do not have to worry about selling the car or doing anything with it.
Cons of Leasing
On the other side of the spectrum, leasing a car also has a few negatives to consider. For example, you are not accumulating any equity in the car. When you lease, you just pay for the use of the car. At the end of the lease, you have nothing to show for all those payments. Another drawback of leasing is that you have a limited amount of miles that you can drive each year. If you go over that limit, you have to pay a per-mile charge.
Pros of Buying
When you buy a car, the biggest advantage is that you can eliminate a monthly payment after the loan is over. If you get a quality car, you might be able to drive several years without having to worry about any kind of payment. During that time, you can save up for your next car and eventually just pay cash for a car. Another advantage is that you can use the car as you want. It has no mileage restrictions and you can treat it how you want without having to worry about paying penalties.
Cons of Buying
One of the drawbacks of buying a car is that your monthly payment will be higher. This might prevent you from getting the car that you actually want. Another problem with buying is that after the factory warranty runs out, you have to handle the repairs yourself. If you run into a situation where you have to pay for a major repair, it can set you back thousands of dollars. You will also not get to enjoy a new car every few years as you would with a lease.
0 comments:
Post a Comment