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Buying vs. Leasing Pros and Cons

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The thought of driving a new car is always exciting, but it doesn’t end with choosing a car make and model. One of your many considerations will be whether to buy a car or lease it. It could be hard to tell the winner if these two went head to head, but here are the pros and cons of each.

Buying Pros

  • You are entitled to full ownership of the car.
  • There’s no limit to the number of miles you can drive.
  • You can build a resale or trade in value.
  • Freedom to customize your ride in any way that you like.
  • No need to worry about possible lease end charges.
  • More cost effective in the long run.
  • Become payment free after the loan is paid in full.

Buying Cons

  • Higher monthly payments.
  • You will shoulder all repairs and maintenance after the warranty has expired.
  • You will probably have to keep up with more years driving the same vehicle.

Buying a car definitely has more advantages over the disadvantages. You won’t be limited to a set number of miles, and since you own the car outright, you can do whatever you want with it. You can enhance its appearance, features and more without having to inform the dealership. If you took a car loan, you can finally have some room to breathe after the loan is paid, which means you can be with the car for a few more years without worrying about the monthly payments.

However, although there are a few cons, they may also carry some weight, the cost of monthly payments being the most evident. Also, even if you have finished with your loan, your car doesn’t get any younger, and you might sustain more repairs and maintenance costs eventually. Still, if you are suddenly faced with an unfortunate life event and you need to free up some cash, you can easily sell or refinance the car and pay for your remaining balance, something which you simply cannot do when you lease a car.

Leasing Pros

  • Lower monthly payments.
  • Privilege to change cars every now and then.
  • Your car will always have warranty and you can take advantage of the latest safety features.
  • Better option if you’re not into reselling or trading cars.

Leasing Cons

  • You are not the legal owner of the car.
  • You can only drive a set number of miles.
  • You need to have stable income.
  • You will still be responsible for repairs and maintenance.

You might notice that there are as much pros as there are cons with car leasing, and there’s much to consider than just monthly payments. With car lease, you don’t get much freedom with your vehicle, so you cannot sell or trade it if you got short of cash. However, if you feel that you don’t need that much mileage, you have no plans of customizing your vehicle, and the idea of driving a new set of wheels every few years appeals to you, then by all means go with a car lease.

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