Leasing or buying a car has financial implications — in consideration, money isn’t the only factor to take before agreeing on a deal. There are big roles at play in deciding whether to buy or lease a car, such as your lifestyle and personal taste, among others.
Here’s a valid question: What are your goals, budget, and personal preferences?
Both leasing and buying vehicles have their benefits — the key is to determine which of those benefits matter the most to you and match your situation.
Below are some of the benefits of leasing or buying a car.
If you’re leaning towards leasing, here are the benefits:
- The cost to lease a car is much lower if bought. You don’t have to pay any upfront sales tax and less or no down payment is required. Although, when returned, you may have extra charges for mileage that exceeds the allowable limit, having any unrepaired damage, or terminating a lease early.
- 1 to 4 years is the typical fixed term when you lease a car. Your monthly pay is tied to the amount of depreciation during the term. * Different models and makes of vehicles depreciate at different rates. You cannot be “upside-downed”, where car owners owe more than the car’s worth. You only pay for the depreciation of the car during your lease term.
- You don’t have to worry about large, unexpected repair bill if you’re covered by a manufacturer’s warranty on your lease term. Although, the regular upkeep, maintenance, and the minimum amount of auto insurance required by the state where you live are still your responsibility.
- You can drive cars with up-to-date technology, safety features, and comfort, if you lease a new one every few years.
- You can return the car or choose to initiate a new lease for a different vehicle once a “closed-end” lease term expires. You don’t have to sell a vehicle yourself or worry about getting a fair trade-in value. Another option is to buy a vehicle at the end of the lease term for a pre-set price. This is a good idea if the vehicle is worth more than the agreed upon purchase price.
- There’s no loan approval required. It’s hard to be approved for a car loan if you have bad credit — which comes with an outrageous amount of interest. In contrast, leasing companies aren’t as strict as lenders as they can take back the car if you don’t make payments or violate any lease term.
Here are the advantages of buying a car:
- Monthly lease payments are less expensive than monthly car loan payments. Although, with each payment, you can build up equity for the future when you decide to trade it in or sell.
- As an owner, you can trade or sell the car, and pay off any existing loan balance, any time. Unlike a car lease, you’re not locked into a fixed ownership period.
- It’s much better to own the car if you drive it as many miles as you want. There’s a limit on the number of miles you can drive it and you’ll be charged a fee upon exceeded limit.
- You can accessorise or alter the car without keeping it’s perfect condition.
- 20% to 40% of its depreciation can occur within the first few years, depending on the car. You get to pay a price that reflects a substantial depreciation discount when you buy a 2-3 year old vehicle.
Do you need cash to make ends meet?
Fill out the small loans application online. Quickle provides decision as quickly as possible.
Once the loan is confirmed, you then set the monthly repayment date of your choice.
Your funds arrive just as quickly, and possibly on the same day.