It’s all about freedom!
At most dealerships, a vehicle lease allows you to drive a brand-new vehicle without the burden of paying a very large sum of money or even get a loan. You only need to pay a small sum for your down payment and your monthly payments, till your lease comes to an end. And at the end of the term, you can either return the vehicle to the dealer or renew your lease. When you choose leasing, you have the possibility to drive a new vehicle every few years and you also do not need to worry about reselling the vehicle because you simply have to take it back to the dealer.
Leasing a vehicle also involves monthly payments, however, they are considerably lower compared to when you purchase a vehicle because only the term of your lease is taken into consideration. With a new lease every few years, you also get to have the latest and coolest technologies and features. Furthermore, if you lease a vehicle for business purposes, a fraction of the car’s depreciation and financing can be subtracted from your tax payments. However, even though you get to enjoy many perks, there are also many rules you have to abide by when leasing a vehicle. It is not advisable to terminate a lease agreement before it comes to an end because you will have to pay a lot of money. You also have to pay close attention to the conditions on mileage and wear-and-tear because it can end up costing you more than you expected or budgeted for.
It’s all yours!
Buying a vehicle is a big big purchase! It is one of the most important purchases you will ever make in your entire life. There are many options for buying a vehicle: you can either buy it outright or get a loan through a financing plan. The first option is the best if you have saved up enough money prior to buying your vehicle. However, most people go with the second option because it does not involve making a huge payment. Another benefit of financing your vehicle is that the monthly payments help you build equity. In any of the instances, when you purchase a vehicle, the vehicle entirely belongs to you the moment you finish paying.
When you purchase a vehicle, you have the choice of reselling it and earning some money in the event that you want to get a new one. You also do not have to worry too much about your mileage or wear-and-tear because it belongs to you. However, the condition of your vehicle and an above-average mileage will affect its resale value. So even if a vehicle completely belongs to you, always remember to take good care of it in case you would like to sell it later on.
There are many benefits of leasing or buying a vehicle. However, in the long run, it is cheaper to buy a vehicle than to lease it because of all the extra fees that are involved. However, leasing a vehicle will give you more flexibility and freedom. Before purchasing or leasing a vehicle it is important to evaluate your budget and needs to see which option best fits you.