Should You Buy or Lease Your Car?
WLF Car Accident Lawyer Gives Pros and Cons of Each
This is a hard question to provide a direct answer to considering that there are numerous trade-offs. If you, however, take a closer look at your needs, preferences and lifestyle, you could actually reach a sound decision.
For instance, if you are in need of an upscale car mainly for business – let’s say, for the purposes of impressing clients – leasing gives you the chance to drive a luxury car for less money. On the other hand, if you do not need a high class vehicle and prefer to keep the overall costs as low as possible, the best pick for you would be to purchase a used car and drive it for as long as it is reliable.
Given that everyone has different situations, below is a list of the pros and cons of buying and leasing a car. Some of the points are financial factors while others relate to an individual’s lifestyle. Just bear in mind that there isn’t a perfect answer to this question.
Buying a car
- You get to modify your car as desired.
- It is more economical over the long term.
- You get to drive as much you like; there is no penalty for excess mileage.
- You have more flexibility since you could sell the car for a decent value down the line.
- It needs a higher down payment in order to avoid being “upside down’ in the loan, which means owing more than the vehicle is worth.
- Higher monthly payments compared to lease payments.
- As soon the warranty expires, you are responsible for any costs of repair.
- You face probable selling or trade-in hassles when you decide to get another car.
- A lot of your ready cash is tied up to the car whose value depreciates with time.
Leasing a car
- Lower payments per month with little or no down payment.
- You could drive a better car for less cash.
- Lower costs of repair since you are under the car’s included factory warranty.
- You can easily transition to another car every 2-3 years.
- No trade-in hassles when the lease is over.
- You pay significantly less sales tax.
- You do not own the car by the conclusion of the lease (though there is an option to buy).
- Mileage is usually restricted to 12,000 miles per year (you could buy extra).
- Lease contracts could be confusing and filled with terminology that you are unfamiliar with.
- In the end, leasing is costlier than purchasing a car and having it for years.
- Extreme wear and tear costs can be an unpleasant surprise at the conclusion of the lease.
- In case of any changes in your driving needs, it is expensive to end the lease early.
In summary, leasing makes it simpler to get a more luxurious car for less money. This is due to the fact that the only payment you make is for the car, instead of purchasing and owning the vehicle’s entire worth. Buying a car, on the other hand, totally frees you from the oversight involved in leasing. The vehicle is yours to do as you please. It is eventually up to you to establish what you need, weigh the pros and the cons of both, and decide what best suits your lifestyle.
If you want to dive deeper into what is actually involved in buying and leasing of cars, you could consult with an Ontario car accident lawyer. You will be surprised at how much important information your car accident lawyer will give you. In order to make the right choice, getting advice from an expert is crucial. Your car accident lawyer will ensure that you make the perfect pick for yourself. If you ever find yourself in this dilemma, do not hesitate to contact us.