To buy or lease a car has been a key question that many keep asking from time to time. The answer depends on a range of factors such as personal lifestyle and state of the market. Recent economic recessions of 1990s and 2008 have brought a shift on the way people think about leasing and buying. Today, people take deeper focus on inherent implications on leasing or buying on finances and every aspect of their lifestyle. This article is a comparative narrative demystifying the stakes that come with both leasing and buying.
Down payments and cost of maintenance
The demand for new cars is informed by fast advancement in technology, safety and cost. However, these advancements also make cars very costly. Buying a car is a huge investment and getting this money may involve taking loans with long repayment periods. If you opt to buy a car the issue of cost does not stop there. You will be required to meet regular maintenance and insurance charges to keep the car on top condition and on the road.
However, leasing does not require a lot of down payment. The user only needs to make modest monthly payments to enjoy the car of choice. In addition, many car lease companies do not want to leave the role of insurance and maintenance to clients because of involved risks. Instead, they take the responsibility so that the user does not incur additional cost apart from fuel.
Sense of style and ability to upgrade regularly
To get a unique sense of style, people want to roar on the road with the latest car models. If you opt to buy a car, it means that you will have to stick and get used to it. Be ready to stick to the same interior décor, features and general outlook of the car even as new ones keep emerging.
If you opt to lease, there is a unique thrill of driving the latest car in the market. You will appear stylish because you can specify the model of choice while paying a small leasing fee. This is ideal for those in entertainment and top profile jobs that demand a positive image at all times.
End of deal equity and ease of disposal
For car buyers, they own the asset after completing payments. This is very important because the vehicle can be used as collateral to get credit from financial institution and the owner can use it the way he wants. For some people, this ownership brings a sense of pride and satisfaction. However, the process of disposing it may be difficult and can only yield little because the car has depreciated over time.
For people who prefer leasing a car, they end up spending a lot of money in the long term but are not left with a tangible asset. Also, in case you want to vacate the lease deal, the cost is usually very high and can result to a lot of losses. You are, therefore, forced to stick with the car until the end of lease. However, you are not stuck with an old car trying to sell it because people are looking for newer models.
Flexibility of use
When you buy a new car, there is greater flexibility on how you use it. This is because you enjoy exclusive rights. There are no limitations on where you can drive, mileage and who to lend to. This provides you with the freedom to drive at night and go to every place of desire.
Using a leased car comes with a lot of conditions. Many leasing companies do not want to put too great a risk on theirs cars. Because they are charged a lot by cover companies, they limit the mileage so that your driving is limited and only permit driving within a limited area. Even though you get the sense of style, these limitations may curtail the level of enjoyment.
While more people are opting to lease as opposed to buying, the decision is dependent on personal preferences. Both options have cost implications whether on short or long-term consideration. The user has to weigh the main reasons for leasing as opposed to buying and make the right decision.