Many people ask me that in leasing or buying which one is better, and my answer is that it depends. This has made people think that I do not want to answer them. But this is not the case; it purely depends on your intention and purpose of buying a car. Today I will be discussing both of them in detail to find an answer for those who are confused.
Leasing a Car- AdvantageThe down payment to lease a car is pretty low, which means that the initial cost is easily manageable for leasing a car. If you come across any issue in the car you have warranty protection to support. The lower monthly payment further causes no worries and fewer burdens on you. There are no upfront sales tax fees, so there is no cost that you might have a hard time managing and have less uncertainty. Even you do not have to worry about the depreciation of the car.
Leasing a Car- DisadvantageIt seems that in leasing or buying, leasing is winning the game. But this is not the case, as there are a few disadvantages too. When you have excess mileage you have to pay penalties that might not be a great thing in your pocket. The warranty covers all, but you are charged a few on excessive wear and tear. The worst part is that you pay for things that will not last with you. If your stable income is affected or you do not have a stable income leasing can be a headache. As monthly payments will be hard to manage and if you terminate the lease early you have to pay an additional fee. The worst part is that you will have to pay higher insurance premiums.
Buying a Car- AdvantageBuying has the perk of having eventual ownership of the car. So with so much hard work, managing the payments, you have something in hand at last. There is no such thing as a mileage limit; you can drive all you want without keeping an eye on indicators in front. When you buy a car you can modify it to your taste and add custom features for your ease. You can sell it anytime whenever you feel that you want to go for an alternative or need cash.
Many people consider cars an investment because of the huge price tag. So take a wise decision.(Balance)