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Buying vs Leasing a Car

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Buy a new car or leasing a car? Buy it or Lease it? Here are some of the debate and discussion on buying vs leasing a car. Whether it is buying or leasing, often there are pros and cons, it is very much depending on your own situation. Here are some of the problems with leasing a car and troubles with buying a car shared by some of our readers. You can learn from what people experienced and choose the best according to your own situation. Be it buy or lease, the best is the solution that best fit your needs.

To make things clear in first stage, you will have to understand that car leasing is something different with long term car rental because car leasing require a lease loan but car rental is basically pay and drive base on a daily rate or monthly rate. Here goes the debate of buying vs leasing a car.

Leasing a car for a business

For anyone who is in a business know that business has risks, when the timing is good, the company earn good, but no one knows what will happen every year. If you just start a business and you need a car, leasing seems to be good because the monthly leasing payment can be written off as business expenses. Other than that, leasing a car do not give you the car loans burden that up to 60-month. If the business is not doing so well after some time, you can stop the lease or lease other cars that have lower monthly lease payment. On the other hand, if you are running a stable business and you do not feel like to change new car every few years, considering buying a car will be good.

Personal enjoyment with cars

Leasing a car usually allow you to change newer car model every couple of years. This is good for people who love to drive luxury cars with less cash down payment or upfront cash. It is good for people who want to try the latest technology available in automobile such as latest safety or latest in-car-entertainment including on-board WIFI. If you love cars and would like to change new car every few years, leasing is better than buying. If you love cars and do not wish to change car frequently, buying is better for you.

It’s about Money, Money, Money

Yes it is true and it’s about money, money, and money. Most of the people who are considering whether buying or leasing a car are all about money. Monthly car payment for car leasing often is lower than what you have to serve the monthly car loan. Some people who have very bad credit score could not reach the minimum require to get car loan may consider leasing a car because the requirement is lesser than car loan. If money is not the problem and you would like to own the car, yes! Buying is definitely better because you own the car and you can sell it for some money after few years but leasing you doesn’t own the car.

Car maintenance cost

Some people who are good in calculation may include the car maintenance cost when they make their decision. If you buy the car, you are the owner of the car, you are the one who responsible for all the minor and major repair if it is not under the warranty coverage. In this situation, leasing has a little bit advantage because you don’t have to worry about car maintenance or major repair cost. Engine oil, air filter, transmission oil, tires, alignment, balancing, brake pads, and brake fluids are some of the cost for car maintenance.

How much do you actually use the car?

For whomever in dilemma to buy or to lease a car, this is a good question to ask yourself. If you own the car, the mileage is unlimited. You can drive the car from New York to California several times without have to worry the mileage. Often there is limited mileage on car leasing and charges for each of the extra miles are high. In this situation, leasing is not really work for people who use their car frequently.

Financing rates vs leasing rates

Do consider also the timing. If the car loan interest rates are low during the time you want to buy a new car, you may consider buying a car because lease payments will not get much lower than loan payments. On the other hand, if the car loan interest rate is high, you can then calculate the difference for both monthly payments. However, this is just one of the reasons to see. You can always consider refinancing your car loan when the rates go down. See also refinance car loan.

If you buy a car and owned it for 2 years, you feel like to change a new car, you may have to go through some process to sell the car to some dealers or private buyer, get the cash then only can buy a new car. You can simply return the car to the dealership and walk away after 2 years if you keep the car in good condition and do not over the prescribed mileage limits. It is easy, it is simple, and it is free of many burdens for some people. But then, you will have to look for another lease or buy a new car. In long term, buying a car will be more practical than leasing a car. In short term leasing a car will be more convenient in some of the situation discussed above. According to statistic, 80% of consumers prefer to buy rather than leasing a car because they do not feel like to change a new car every few years.

There is a quote from Howsen Koh, “The best thing in life, best or nothing”. It literally means to go for the best thing in life, best for you, otherwise, go for nothing, where nothing is still the best in some situation. Whether is buy or lease, it will be the best for you as long as it suits your needs best. See some advice about car leasing here: leasing versus buying a carand car leasing questions.

car buying, chevrolet cruze
Buying vs Leasing a Car – Written by Angelina, Malaysiaminilover

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