Getting a new vehicle is always a very exciting time. When you are in the market for a new vehicle, one big decision that you will have to make is whether you should buy or lease the vehicle. Prior to deciding whether you should buy or lease your next vehicle, it is important to consider the pros and cons of both options.
One of the main advantages of leasing a car is that it will come with a much lower monthly payment than if you were to buy the car. Lease payments are often around half of what a car payment would be for the same vehicle. Another advantage of leasing a vehicle is that you will have far more flexibility and ease when it comes to upgrading the vehicle when your lease comes to an end.
The main disadvantage of leasing a car is that you will never own it outright. For those that would like to one day live without a car payment, leasing is not a good option as you will always have a monthly payment. Furthermore, you can also get stuck paying disposition fees when the lease comes to an end.
One of the primary advantages of buying a car is that you will ultimately own it outright. Whether you pay for the car in cash or take out a loan, at some point you will own the car without having to make a monthly payment. Furthermore, many of the perks of leasing a new car are also received when buying a new car. This includes receiving a full service and maintenance plan, car washes, and other perks.
While there are clear pros that come with buying a car, there are cons as well that need to be considered. One of the biggest cons of buying a car is that your monthly payments will be much higher. Car loan payments for new cars can be very expensive and are typically much higher than lease payments. Another disadvantage of leasing a car is that you will not have as much flexibility. You typically will have to drive it for at least a few years before your loan balance is less than the value of the car due to a car’s depreciation schedule.