Is Owning or Leasing a Car Better?
If you have just finished your online driving classes and are in need of a vehicle, you could be asking yourself whether you should opt to purchase a car or lease one. Both options can have a lot of benefits, so you should consider the pros and cons of each so that you can make the right choice for you.
The Benefits of Owning
A lot of people opt to buy cars rather than lease them for a reason. These are some of the main benefits of owning a car:
- You don't have to worry about making payments toward something that you'll never own. Once you make a set number of payments and pay off what you owe, the car will belong to you. If you choose to keep the car rather than immediately buying another one, you won't have to worry about making car payments anymore, which can be easier on your budget. This also means you can sell the car later to get the cash to buy another vehicle or to put a down payment on a car that you're interested in.
- You don't have to worry about mileage restrictions. Although putting a lot of miles on your car can have an effect on its value when you decide to sell it, you don't have to worry about being penalized for it in any way, which is not the case when you're leasing. When you lease, you're often restricted to putting 12,000 or 15,000 miles on the car each year, and you may have to pay a penalty per mile if you go over. This can really add up, especially if you have a long commute or like to travel in your car.
- If you stain the seats or cause minor dents or other minor damage, you don't have to worry about paying a penalty because of it.
- If you have bad credit, you can pay cash for a car or can purchase from a used car dealership that offers buy here, pay here financing. To qualify for a lease, you often have to have good credit.
The Benefits of Leasing
Even though a lot of drivers prefer owning a car, there are some who swear by the benefits of leasing. These are some of the positive things about leasing a car:
- If you're the type of person who would prefer to have a new car every few years, leasing can be a good option for you. After a couple of years, around the time that you might get tired of a car anyway, you can swap out the car for another new model.
- Lease payments are often more affordable. This means that you can still lease a nice car if you're on a relatively tight budget. It also means that you can get more car for your money. Instead of driving a more economical car, you can often lease a luxury vehicle with all of the bells and whistles for a similar (or even lower) monthly payment.
- You often do not have to come up with as much of a down payment when you are leasing a car as you do when you're buying, which can make getting into a nice vehicle a whole lot easier.
There is really no right or wrong answer if you're trying to decide between buying or leasing a car. Both can be great options, but it is important to go over the advantages of each and to look at your personal situation so that you can make the right decision. Another good idea is to head to a local dealership so that you can talk to a sales professional about your options.