By Kristy
Buying and leasing a car
Both have
their pros, and both have their cons. Depending on your financial income or
even if you travel frequently, buying or leasing a car may be best for you.
Leasing
People often lease a car when
they have a steady and reliable income. If you decide to lease a car, your
monthly payments will typically be lower than an auto loan. When you lease a
car, you are always protected by a warranty, and you don’t need to worry about
trading or selling a car. But, if you lease a car, you can only drive so many
kilometres. You also need to consistently and properly maintain the car in good
condition. Overtime, you will pay more for leasing the car rather than buying.
Buying a car
Buying a car also has its pros and its
cons. When you purchase a car, you have ownership of it. Which means you can
drive as far as you want to, and you can customize it however you’d like. You
can build-up the trade in or resale value, and you are at no risk for lease end
charges. But, there will be higher monthly payments. There is a risk of an
unexpected post-warranty repair cost, and you are personally responsible for
trading and selling the car if desired.
In the short term, leasing a vehicle
does seem cheaper, and a better idea overall. But, in the long term, buying a
car is much more beneficial for most individuals.
