When deciding whether you should lease or buy your dream car there are a number of positives and negatives for both options. It’s important to know what each means before making any rash decisions.
Leasing is another way of saying you can borrow your care under a contract. The commitment with leasing is much less when compared to buying, but there may be restrictions in place on what you can do with you car.
Buying basically means you purchase your vehicle outright. When you don’t have the cash to buy it outright, you can then look at financing options. There is more commitment with buying, as you can’t just return your car after the lease runs out. However, you can also make as many modifications as you want.
Before making the decision on whether to lease or buy, it’s important you weigh up the pros and cons for each option.
- You don’t have to save as much money to lease, as there is less money needed upfront
- It could potentially make managing your financial budget way easier
- Leasing your dream car will generally mean the car will be new and of good quality
- Leased cars are usually covered by the manufactures warranty. Some cover repair costs
- Upgrades! Just like upgrading a phone, you can upgrade your car every two or three years
- You won’t be able to make any personal modifications to your dream car
- The car will not be solely owned by you as an asset
- The amount of money you pay over the lease may end up costing as much or more than getting a car loan
- You need good credit history to show you can pay it back
- Potential to be locked into a contract that you can’t get out of.
- The car is your own, meaning you own it outright as an asset
- You can make any modifications or alternations that you deem fit
- If you take out a car loan, you will end up owning the car once you finish repaying
- The overall value of your dream car will decrease over time, meaning your investment will be less valuable
- The vehicle can be repossessed if you don’t make payments on time
- Will require a much larger upfront cost compared to leasing
- You will need to sell the vehicle on off your own back before upgrading the vehicle
There are advantages and disadvantages to both routes, but make sure to keep some things in mind before considering either. Only deal with companies with a good reputation, don’t just take the first deal you’re offered, consider how much you can afford and always consider all options before signing any contracts with dealerships.