Lease or Buy? – This is the Question!
Deciding whether to buy or lease a car is a serious question. However, this is not always a question concerning money. Of course, the money factor is crucial but this is mostly a question of lifestyle and personal preferences. Some people simply do not get a car because they cannot choose whether to buy a car or lease one.
In order to help you make the right decision, we will now consider all the pros and cons of both buying and leasing. As we have already mentioned, this is a question of preferences, so the choice one should make is purely individual. For example, if you are going to change your lifestyle or are planning to get married, this will affect your decision as well. If, for example, you are going to get married and plan to have kids, then you may need something like a minivan. This should be your constant car and you may be planning to use it for many years. So the best choice for you will be to buy a car than to lease one.
On the contrary, if you are a businessperson and you do not plan to marry yet, you may need frequent changes, so leasing a car will be the best option for you. In this case you will be able to have a new luxurious car every 3-4 years. Thus, leasing offers more flexibility for you. Besides, if you decide to lease a car, you will have to pay very little down payment and also little monthly payments as compared if you decided to buy the same vehicle. But, if you are young and somewhat lax, then you may have problems with excessive wear and tear and mileage as well. One of the disadvantages of car leasing is that you will have to pay extra fees for wear and tear and also for every excessive mile. Each mile usually costs 10 or 20 cents. You are usually allowed to drive 10,000 to 15,000 miles a year. Also, if you decide to interrupt your lease contract, you will have to pay huge penalties, and these are called early lease termination penalties.
As compared with car leasing, if you buy a car, you own it, and accordingly, you do not have to worry about mileage, wear and tear, termination penalties and so forth. But here another question arises; when you lease a car, you lease it for nearly 3-4 years, so its warranty covers all major and minor damages. The same cannot be said about car buying, as in this case, the warranty expires but the car is still in your hands.
These were the major points you have to consider when deciding whether to buy or lease a car. Do not forget to take into account your lifestyle and the amount of your income.