Nowadays, many road-users face a problem if to purchase or lease a car. In fact, a new car is considered to be like the second biggest buying after the house. Especially the first-time purchasers are confused with this issue. It has to be said that there are a great number of leasing companies providing their clients with a very good service and having low prices, so the customers do not have any problems with car leasing. But many motorists still hesitate and cannot answer the question: is it better maybe to buy a new car, and it will stay in my property anyway? So, everyone should independently decide to purchase or lease a car, taking into account how often and how long he/she needs it for use.
As known, every issue has its pros and cons. Let us focus first on the advantages of the question. If you decided to buy a car, you would get: longer operating cycle of the vehicle, because initially it was new; you can do with your own car whatever you want (to change its color or put some stickers on); you get no mileage restrictions. If you decided to lease a vehicle, you could get the following advantages: you are able to change as many cars as you wish; low or no down payment is often required; the lease period lasts normally three years that is the warranty period of the bumper to bumper warranty for a new car; you will have a possibility to buy the leased auto at the end of the lease. At the first sight, these two topics seem to have no similarities, but they do have them. For example, you may both buy and lease a vehicle with the greatest up-to-date technologies and highly safe features similarly. Thus, after having purchased such car, you will be completely satisfied with yourself. It will help you to be more self-assured than ever before. Eventually, many people want to show their status by means of their new and expensive vehicle. But the same effect may be reached when using a leased car. After all, you do not have a sign that your new auto is leased. Besides, you may travel by either purchased or leased car and get the same comfort and coziness.
Nevertheless, there are some disadvantages and contrasts of the issue. Of course, the brightest difference between car buying and leasing is its cost. Normally, if purchasing an auto, you get a high percentage rate of the loan and from 10 to 20% of down payment, in contrast, by leasing a car, you pay only monthly fees, but it limits the number of miles to drive. Next, when you buy a new car, you will sell it in 3-4 years for sure, so it’s difficult to define its real value when it gets older, and you may lose money. In contrast, a leased car will never get older, because you may change it for a newer one. When possessing your own car, you do not need to think about the mileage restrictions, and that you will pay extra if you drive when your lease agreement is over. You will drive by your own auto so long as you want, and nobody will be able to forbid it. However, you will be always concerned with your own car more than with a leased one. Maybe it’s better to consider the option to buy a used car, if you do not want to lease it or have a lack of money for a new vehicle?
Coming back to our question what is better to buy or lease a vehicle, from a financial point of view it’s preferable to lease a car. If you choose a big leasing company that is famous for its good organization and reliability, you will be given a nice car and if it breaks down it will be changed for a new one without any difficulties. Nevertheless, you should make some calculations before giving preference to buying or leasing car issues. Before deciding whether to purchase or lease a vehicle, look at the real price of the purchased and leased cars, and try to figure out the costs for insurance, down payments, maintenance, taxes, monthly payments as well as your lifestyle, credit history, driving needs for a period of some years. Moreover, you should pay attention to both similarities and contrasts the two issues have. Thus, using either purchased car or leased vehicle, you may underline your status, feel cozy and comfortable as well as get access to the up-to-date technologies and the safest features. Moreover, you may travel anywhere you want, enjoying the atmosphere of your auto. Although, don’t forget about negative aspects of the issues: the down payment and monthly payment differences as well as mileage restrictions for the leased cars. Thus, a question if to lease or purchase a car is completely up to you! Summarize all your expectations and possibilities to make the right choice!
Clark, J. 2014. Is it smarter to buy or lease a car? Web. 30 March 2014 <http://auto.howstuffworks.com/buying-selling/buy-or-lease.htm>
Infoplease.com. 2014. Leasing versus Buying That New Car. Web. 30 March 2014 <http://www.infoplease.com/ipa/A0193143.html>
Marketwatch.com. 2014. Lease or Buy a Car? Web. 30 March 2014 <http://www.marketwatch.com/tools/carleaseorbuy>
Usnews.rankingsandreviews.com. 2014. Buying vs. Leasing | U.S. News Best Cars. Web. 30 March 2014 <http://usnews.rankingsandreviews.com/cars-trucks/Buying_vs_Leasing/>