By Christina Costa
When making the decision between buying or leasing a car, some consumers find themselves in a state of confusion. There are factors to take into consideration and pros and cons that come with each option.
If find yourself without a large down payment, then leasing might be the better choice. Most lease options do not require a large amount down, so this allows the consumer to get an even better vehicle, than if they had decided to buy. Also, the monthly payment on a leased vehicle is generally smaller than the payment for a car that was purchased.
If you think there is a chance you might want to sell or trade your vehicle at the end of the term, then purchasing is a good decision. You can sell your leased vehicle, but it comes with large payouts (and at a price for more than the car is worth). If you decide to purchase the car, then you become the owner at the end of your loan term. You can sell it at Kelly Blue Book value or use it as a trade towards your next vehicle.
Maybe you are looking at what option is the most convenient for you – and either buying or leasing falls into that category. When your lease is up, you no longer have to worry about maintaining the car or selling it. You hand it back over to the dealer and move on to the next car. You can lease right there with very little hassle.
By purchasing a car, you do not have to worry about going over the set mileage. In leasing you are given an annual or month-to-month amount, and fees are calculated in the even you go past your amount. Also, with purchasing do not have to worry about handing the car back to the dealer, it is your option to keep it or trade for something different.
If you decide to buy the vehicle, then the sales tax is paid in full at purchasing time. With a leased car, you will only pay the tax on the part of the car value that you use. That is spread out over the term of your lease, on a monthly basis. If you decide to not purchase the car when your lease is up, then you will not have paid the full sales tax either.
One factor that consumers take into consideration is their car payments. If you purchase the vehicle, then you are only paying during the term of your loan. After you have paid it off, the car is yours. With a lease, you will always have a car payment. When the lease is up, then you start from the beginning with a new car – but also a new lease.
Warranty is another consideration to think about, most car leases take place while the car is under warranty. When the lease is up, you can lease a new one. If you purchase the vehicle and the warranty runs out, that is your decision to make if you want to purchase also an extended warranty. If you want a newer, more reliable car then you will have to sell or trade it in, plus come up with a down payment for the next one.
There are pros and cons to take into consideration before making the final decision between leasing or purchasing a car. It comes down to the individual, to decide what factors will be the most important. If you make a choice in your best interest then you will end up with a plan that you will be happy with for as long as you keep the vehicle.
Christina Costa, a freelance automotive writer, recommends Equotegrabber where you can get an automotive quote online in seconds! Visit Equotegrabber.com
Source:www.isnare.com |
