Reader question:
What are the pros in buying vs. leasing a new car?
Kate
Great question.
I’m glad that this was asked as well, because there is more to leasing a car than just the cons. It’s true that leasing a new car instead of buying one can be a costly experience, and taking the wrong steps could bring you face to face with a lot of fines, but there are many people that find leasing cars preferable to buying them for several reasons. If you are willing to stay within the terms of the lease and leasing a car is better for you than just buying one, then you will definitely want to consider it.
So here are the pros of buying vs leasing a new car:
- Down payment. Car dealerships tend to charge a lot of money for these, and many people planning to buy a car will have to spend several months saving up, just for the down payment, before even thinking about going to a lot. If you want a faster resolution, or one that’s immediately cheaper, if not in the long run, then you should definitely consider leasing a car for the low down payments that the leasing companies usually offer.
- Monthly payments. If you lease a car, you will be driving a new car. But it isn’t yours, so you aren’t required to continue paying for it as if it is brand new, straight off the lot. Instead, you’ll be making payments based on the depreciated value of the car. Because of this, the monthly payments for a leased car can be a lot lower than those for a car you are buying.
- Getting rid of it. If you buy a car, when you’re finished with it, it can cause a lot of trouble. Finding someone to buy it back from you for a decent price, or getting a decent deal on it as a trade on, can be very stressful ad difficult. However, if you lease your new car instead, you don’t have to deal with all that junk. Once your finished with your car, so long as you kept it for the period in the lease, you can just bring it back to where you rented it from and leave it, or get a different one. That simple.
Cheers,
Fashun Guadarrama.