Buying vs leasing a new car

Reader question:

What are the cons in buying vs leasing a new car?

Jack

It’s a long list, but we can shorten it.

Now that we understand a few of things that you have to consider before leasing a new car, we have to consider what’s the real difference between buying and leasing. If you have both options equally open to you because you’re a good driver and have good credit, then you’ll want to know which one benefits you more, which one fits your situation and personality best. For this reason, lets go over the cons of buying vs leasing a new car.

Leasing a car is a difficult to decision, so here are some of the bad things to think about before jumping into it:

  • It’s like renting your place instead of buying it. The money is just disappearing into someone else’s pocket without getting you anywhere in particular, and you aren’t going to be building any equity. For this reason, many people choose to buy their car, because any car that they lease is not theirs and never will be, so they have much less control over what they can do with it.
  • Never ending payments. If you buy a car, eventually it will be paid off. If you lease a car, though, there’s no end in sight. You will always be paying for that car, every month that you have it.
  • Penalties. You might lease a car because you want more freedom to change the car your driving, but remember that leasing comes with terms. If you want to get out of a car lease before the date that you settled on with the company, it’s going to cost you a whole lot of money.
  • Restriction. When you lease a car, they pretty much get to control how much and the way in which you drive. The leasing company will set a certain amount of miles that you can drive, and if you go past that amount, guess what? More penalties.

Cheers,

Fashun Guadarrama.

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About the Author:

Austin Davis, consumer car repair advocate. "Hi there! I love to help people solve their car repair problems and I hope my site was helpful to you today. Thank you for stopping by."