When you want to get a new car to drive, don’t always assume that purchasing a car is the best choice. Some people may benefit more from leasing a car instead of purchasing a car, but not everyone will. It all depends on your current situation and how far you drive every day to work. There is no right or wrong choice in general. It all depends on what is right for you.
Pros of Leasing a Car
Leasing a car does have its advantages. For one thing, you’re not stuck with the responsibilities of car ownership. You’ll never need to pay a lot of money to replace an engine or transmission system. You only have a limited number of expenses, such as the monthly payments for the lease and insurance.
Another advantage of leasing a car is that you’re not stuck with the same car for years. You can look stylish and cool in front of your friends by driving a different vehicle every 6 months or so. This gives you the chance to drive luxurious vehicles which you could never afford to purchase yourself.
Cons of Leasing a Car
Leasing a car is better for people who do a lot of in-town driving. Leasing companies don’t want you taking cross country trips with your leased vehicle, so they put mileage restrictions in your contract. If you drive more miles within the leasing period than you’re supposed to drive, then you’ll need to pay more money in fees. This restricts you a lot in terms of where you can drive and how often you can drive.
All the money you pay will not result in ownership of the vehicle. After the leasing contract expires, you must return the vehicle back to the dealership. Then it’ll feel like all the money you paid got you nothing in return.
Pros of Buying Cash a Car
People like to purchase cars because they get to own them. You could use this to your advantage if you keep the same car for 5 to 10 years. The terms of your car loan will probably be fulfilled after 5 years, so you could literally keep the same car for an additional 5 years and never make another monthly payment.
Car ownership gives you the freedom to customize your vehicle. You can change the paint job, wrap your vehicle with vinyl designs, or do any other crazy thing that you want. There are no additional fees associated with the end of the loan either. This is contrary to what you see at the end of a lease agreement where fees are always piled on.
You won’t have any mileage restrictions when you buy a car. You can take your vehicle on a road trip across the country and not get penalized for it when you get back home.
Cons of Buying Cash a Car
The biggest downside to purchasing a car is the depreciation. Unless you’re going to keep the car for over 50 years until it becomes an antique, do not expect to ever profit from purchasing a car. It loses value each time you drive it. On top of that, you must pay for any repairs needed if something goes wrong with the car. A lot of people don’t have the money for repair costs, so car ownership becomes a huge problem in these circumstances.
If you don’t have a stable or dependable income, then you will have trouble making your car payments and satisfying your car loan agreement. This could result in a damaged credit score which makes it difficult for you to get a loan in the future.