When it is that time again to consider whether to buy or lease, you may be a bit confused. You may think to yourself why lease a car when you can own one at the end of your payment plan? Well, the answer to this question only you can answer. Your personal style and budget will determine the outcome.
When you lease a vehicle you are paying to use the vehicle. On the other hand, when you take out a loan to finance the car you are making payments to make the car your own. Each one of these financing methods has drawbacks and benefits.
When you are trying to make the decision between the two, make sure to put your finances into perspective, as well as your personal preferences. Do you enjoy, and can afford, owning a new vehicle every few years? Do you want to have low monthly payments, with no money down as your option? Maybe you do not want to deal with owning a car?
Keep in mind that when you buy a vehicle, you are paying for the entire cost of the automobile. It doesn’t matter how many miles you drive, at the end of the loan the vehicle is yours. Once the car is yours, you can make a decision to keep or sell the vehicle at its depreciated value.
In comparison, when you lease a vehicle you are only paying a portion of the vehicle’s costs. This is the part that you use when the car is in your possession. You will also not have to make a large down payment when you lease the vehicle. Your monthly payments will also be less than if you were buying the car.
Why lease a car when buying is an option you have. Keep in mind that when you lease a car you are not building equity on the vehicle. When you buy a car, the payments you make are being put on its equity. When you lease, you will have lower monthly payments than when you purchase. You also have the option of not making an initial down payment and the choice of buying the car at the end of the lease term.
We hope you found this article interesting! You can get great information and details about leasing cars and the simple steps you can take to lease a car that will be perfect for your needs now!