A question as old as time.
Should you own your car outright or only rent before trading one in for another? While there may not necessarily be a “correct” answer, there are still plenty of factors to consider when determining which option is the best for you.
With 2021 being a prime year for auto financing, now is an appropriate time to break down the pros and cons of buying or leasing a car.
Making the Right Decision to Buy or Lease
See below how the advantages and disadvantages to buying and leasing a car apply to your personal preferences.
- Buy
Purchasing a vehicle (even through a loan) contains the advantage of you owning that car. Your monthly payments on the car will eventually end, unlike when you are constantly leasing.
The best way to get value out of a car is by driving it long after paying it off. This is only possible when you buy the car. The longer you own a car that runs effectively, the less your monthly payments seem to have affected your wallet in retrospect.
The disadvantages of buying a car are also fairly obvious. First, the price of purchasing a car is too substantial for plenty of people out there. Even with low-interest rates, the average cost of a new car has eclipsed $40,000, an untenable number for even those who have some disposable income.
Add in other factors such as worrying about maintenance and depreciating value, and buying a car becomes an option that is certainly far from a no-brainer.
- Lease
More popular recently, a top advantage of leasing a car ensures that its long-term maintenance is not a real concern for you. Additionally, and most importantly to many, auto financing is less difficult as the monthly payments are often lower.
The disadvantages generally start with the ceaseless cycle of monthly payments, returning the car, and then starting all over again. Other negatives include mileage limits on lease contracts, potential fees when returning a worn-down rental, and the inability to make customizations.
When leasing, no car is ever yours. Whether the trade-off for not paying the purchase price is worth it or not is up to you.
Buy or Lease – Which is the Best Choice for You?
The time is now to take advantage of optimal auto financing conditions, and you must now decide whether to buy or lease your next car. This is an important decision that requires careful consideration.
Ultimately, where you land in this debate depends greatly on your financial preferences and mentality regarding ownership. Either way, as long as you educate yourself on the pros and cons, you should come away satisfied with your decision.
Learn how you can finance your next car at https://vantagefinance.com.
