Should you lease or buy a car? Which is best for you?
A major yet understated decision that needs to be made once a person has decided that they need a vehicle is whether they are going to lease or buy that vehicle. These two options both have their respective strengths and weaknesses and it is essential that one appropriately weights the pros and cons of each method of acquiring the vehicle before committing to one or the other. This can be a difficult decision to make but hopefully reading this article will help you make a decision.
The difference between leasing and buying is that when an individual signs a lease, the individual is contractually obligated to pay a monthly fee for the vehicle for a certain amount of time after which they must return the vehicle. The duration of the lease can vary, and they can sometimes be renewed but they tend to be for no more than a couple years. Once the contract has terminated, the person leasing the vehicle will need to give the vehicle back to the dealership they originally leased it from. However, if a person were to buy a vehicle, they would make monthly payments until the vehicle is paid off and after that they do not have to give the vehicle back to the dealership.
Now to discuss whether leasing or buying is superior, we will start off by taking a look at the buying process. A lot of people in the market for a vehicle will choose to buy the car because they have the money to put down on a car, and enjoy the idea of putting money towards a vehicle that you will soon own completely. On the other hand, people tend to lease vehicles when they like to constantly change their vehicle or style. If you are not ready to make a long term agreement to have a car for a decent amount of time, leasing would be the best option for you. Both options have their pros and cons and ultimately it is up to the individual’s preferences and needs.
Hopefully reading through this article aided you in making the major decision of whether you should lease or you should buy a vehicle.