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Leasing Versus Buying A Car

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Leasing a car or buying a car is better? Lease or buy? Buy or lease? Leasing versus buying a car, conclude which one is better for your situation based on the pros and cons for both leasing and buying a car here. Find the best solution for yourself while not listening to all the opinions about car leasing that may not even related to your current condition. Always keep in mind that you know best about yourself while not others.

Well, it is very common for anyone to be in dilemma when considering either buying a car or to lease a car especially car leasing has become popular lately. It is always depends and we can’t say one is better than other. Keep in mind that car leasing IS NEVER THE SAME with car hire or car rental. Car leasing requires lease loans while car renting does not require any car loan. Here is the list of some factors to consider based on your own situation.

Monthly Payment. Well, the biggest difference between lease and buy a car is the monthly payment. The monthly payment for car leasing is often lower than monthly payment for buying a car. Here are some guidelines for how to calculate a monthly car payment. If your financial is very weak and only able to pay very low installment every month, you may consider leasing a car than buying a car. Otherwise, you can definitely buy a car.

Risks for major repair. Some experts or smart people who do not want to bear the risks for major repair on their car choose to lease a car rather than buying them. Why? This is because the cost for a major repair may cost up to few thousands. You will have no problem with car leasing but you bear your own risk if you are the owner of the car. However, you will have to consider the long-term cost for car leasing too.

Ownership. Keep in mind that the CAR WILL NEVER BE YOURS. This is one reason why some people willing to go for cars under 500 dollars or cars under 1000 dollars rather than leasing a car.

Limited Miles. All the car leasing companies or car dealers will set limited miles on the lease contract as well as charges for extra miles. If you want to lease a car, be prepared for limited miles. You will not have these problems if you own the car. See also problems with leasing a car.

New or used car. At most of the time you can’t get a new car with car leasing companies. Mostly are used cars or few year old cars. If your financial is strong enough and you prefer new car, you may consider buying it rather than lease it. If new or used doesn’t bother you at all, you will have to choose it based on other factors.

Down Payment. Buying a car require down payment and some up-front costs while leasing a car usually require zero down payment. Check out the advice on buying a car and compare which is better for your situation.

There is a Chinese idiom said “羊毛出在羊身上”, yánɡ máo chū zài yánɡ shēn shàng. It literally means wool comes from the sheep’s back; One gets the benefit, but the price has been paid, nothing comes for free. The reason why car leasing payment is lower than car loan payment because lease payment are to pay off the depreciation charge, finance charge, as well as possible fees. On the other than, car loan payments pay off a principal charge and finance charge.

Both car leasing and car buying have pros and cons, but it doesn’t mean you must choose one to go. In some other situations, some people choose to go for short term car leasing for some reasons and then buy a car. In conclusion, leasing or buying a car doesn’t really matter but what matter is the best deal for you.

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