Getting a new car is always an exciting time – whether the car is bought outright or leased from the dealership. Many people believe that their car, much like their home, is an extension of the person they are or indicative of the person that they may become. A car is equivalent to your status in many people’s minds – although that is not quite true. There is much debate over whether it is better to end up leasing or buying a new car. Auto leasing is the preferred option for many people.
In contrast to buying a car, auto leasing requires very little or even no money, upfront in exchange for the vehicle. Additionally, leasing a car generally results in lower monthly payments, though you are not paying to own the car. When the lease ends, you do not have a car and will either need to replace it or go without. When you buy a car, once you have finished paying the bank notes, the car is still yours. This difference may be worth the extra money you pay each month in the long run.
Depending on your personal situation, both auto leasing and purchasing a car have advantages and disadvantages. When you lease a car, you can get a better car for less money and even drive a brand new car every few years. On the other hand, when you buy a car, you build equity in your credit and can have a car for years and years after it is paid off. Furthermore with auto leasing, there is none of the hassle associated with trading in your car at the end of the lease, which cannot be said for buying a car.
When you buy a car there is no mileage penalty at the end of each year. With a lease you must mind your mileage. Although the payments may be smaller through auto leasing, if you buy a car when the interest rates are low, it is just a better financial decision to make the purchase rather than to lease. Buying a car will leave you with more flexibility later – if you ever want to sell it, you can. You cannot sell a leased vehicle.
Not everyone should buy a car and not everyone should lease a car, it all depends on the type of person. Sometimes, it is difficult to tell the difference and identify what type of person you may be currently. If you like to buy a new car every few years, auto leasing may be for you. When you lease a car you can not only lower your payment and drive a nicer car, but you change vehicles more often than if you owned the car. If you are the type of person who drives long distances, enjoys having the same car for a very long time, and do not like to be forced into making decisions regarding cars every few years, you will definitely want to buy a car rather than lease one.