Long Term Financial Benefits of Buying vs Leasing a Car
Getting a car is a big step to take in your life, and one that you should look forward to as much as possible. You can enjoy so much more freedom and independence once you have a car, and this will open up many more doors for you. However, you need to know the right choice to make when it comes to getting your new car, and money is definitely a factor to keep in mind here.
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There is no question that a car is expensive, and owning and running a car is going to cost you a lot of money in the long run. There are so many things that you need to account for, but this is something that raises the question about whether it is better to buy a car or lease a car, and this is largely down to personal choice, and don’t forget insurance costs either! We’re now going to explore the differences between the two and look at the long-term benefits of each.
Buying a car
Buying a car is exactly what it sounds like. You exchange money for a vehicle, and then you own that car indefinitely. What you do with it after that remains largely down to you, and the amount you pay depends on a number of factors, including make and model, age, and whether you are buying it new or second hand. Buying a car is generally the more popular option among drivers these days, simply because you get to own it afterwards, and this is something that people place a lot of value on. There are plenty of options for buying a car, and you need to make sure you get this right before parting with your money.
Leasing a car
Leasing a car is different, but it is something that is growing in popularity these days. When you lease a car you are essentially renting it for a predetermined amount of time for a specific monthly cost. This, of course, comes with advantages and disadvantages, and there are so many factors that you should bear in mind when you are trying to make the right choices here. You have a lot of different options when you are leasing, but you need to understand you won’t own the car once all is said and done.
Benefits of buying
So, what are the benefits of buying a car versus leasing one? Well, these are pretty much the specific points to bear in mind here, and this is something that you need to understand:
- You pay less over time – One of the key financial advantages of buying a car instead of leasing is that the long-term costs are lower. Once you have paid the vehicle off you’re not going to need to front any more costs besides gas and maintenance. This is why many people try to buy the car outright if they can.
- Do what you want to it – Think of this as kind of a similar deal to buying or renting a property. If you rent a home you are restricted to what you can do and the modifications you can make, but if you buy it you aren’t. The same applies with buying a car.
- You can profit from it – When you buy and own a vehicle you can do what you want with it after the fact, and this means you can sell it on if you want. Making a profit will be tough as cars tend to depreciate over time, but when you want to get a new car you will be able to sell your existing one and make some money from it.
- Option of cheaper cars – Buying a car pre-owned is going to work out significantly cheaper than a used car, and this is one of the key advantages of buying a car as opposed to leasing one.
Benefits of leasing
There are also benefits to leasing cars instead of buying them, and this is something you are going to need to keep in mind over time. Check out these essential points that can help you determine the benefits of this right now.
- Low monthly costs – A key advantage of leasing a car is that there is practically no down payment, and you have to pay very low monthly costs, which is a huge advantage.
- Get a new one every couple of years – Another highly attractive element of leasing a car is the fact that you can trade it in every couple of years, at the end of the lease, and upgrade for a newer, sleeker model. If you like to get new cars fairly regularly, this is the option for you.
- Maintenance costs are covered – Cars need maintenance work and they have to be looked after, and the great thing about leasing is that this is a great way of covering the maintenance costs, and working on improving the car long-term.
- You don’t have to sell it – If you own a car and you want to buy a new car, often this means having to sell your existing car, and this can be a rigmarole. When you lease a vehicle that is not an issue, so this saves you hassle and stress.
Where to find the best deals
There are plenty of options to keep in mind if you want to lease a car, and most showrooms, both new and secondhand, will offer leasing options and specific vehicles for lease. There are also plenty of providers online that you can check out in order to find the best possible options. You just need to have an idea in mind of what you would like to achieve, and what sort of vehicle you’re looking for.
Leasing a car has obvious benefits, as does buying, but we would recommend leasing these days because of the convenience. You get a new car every few years, repair and maintenance work is generally all covered, and you make low monthly payments. An attractive and appealing option for the modern driver.
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Original Article Posted at : https://www.valuewalk.com/2020/07/financial-benefits-buying-leasing-car/