Should you buy or lease?
Advantages of Buying
To continue, there are no mileage restrictions associated with buying a car like there are when you lease a car. You can drive as many miles as you’d like without ever having to pay penalties in mileage overage costs. Finally, when you purchase a vehicle outright, you have the flexibility of selling the car whenever you want.
Disadvantages of Buying
Finally, unlike standard investments that appreciate over time, cars depreciate in value while depleting your liquid cash in the process.
Advantages of Leasing
For the most part, leasing provides an opportunity for people to drive more expensive vehicles for less money each month. Additionally, leasing allows consumers to drive a new vehicle every few years depending on the length of the lease program. Moreover, most leased vehicles are comprehensively covered under a manufacturer’s warranty during the length of the lease, allowing consumers to own a more expensive vehicle without the worry of large maintenance and repair bills.
Finally, unlike owning a vehicle outright at the end of a standard automotive loan, leasing helps consumers avoid the hassles often associated with selling their used car to an independent third party or trading in their vehicle to a local dealer. Instead, you simply turn in your vehicle at the end of the lease term and begin a new lease on a new vehicle, if that’s the route you choose to take. It’s a simple method some consumers find more attractive than the traditional used car sales or trade-in process.
Disadvantages of Leasing
To begin, most vehicle leasing programs have a yearly mileage limit. This means that you can only drive your vehicle a certain amount of miles every year without paying a penalty at the end of the lease term. Obviously, these mileage limitations wouldn’t work for someone who drives their car long distances on a frequent basis or someone who doesn’t want to be limited to the amount of miles they drive in any given month during any given year. However there are several lease programs that allow you to go 10,000 miles, 12,000 miles, or 15,000 miles per yer. These programs work for almost everyone in the market. Otherwise no one would ever lease a new car.