To Own or Lease: What You Should Know
When it comes to buying or leasing a car, there are many factors to consider. Your choice is dependent on lifestyle, financial situation, and basic preferences. If you’re on the fence about which one is better for you, check out a few of these aspects.
The Housing Analogy
The best analogy for comparing leasing and ownership is renting versus buying a home. Renting and leasing both offer versatility, as you aren’t making a full commitment, which allows you to switch to another option. However, buying a car is a lot like buying a house. You’re on the hook for all the upkeep and are fully responsible for selling it when the time comes.
Typically, lease payments are cheaper than car notes. Paying less per month is often better for people who are adhering to a budget. However, at the end of the lease, you own nothing. Remember that most leasing deals require a down payment that’s usually about 10 percent of the value of the vehicle. If you don’t have the money up front, search for no money down leases.
If you love to upgrade your vehicle with new wheels, body kits, or interior gadgets, owning the car gives you the freedom to do as you please. By comparison, if you decide to lease, you’ll need to keep everything as-is. This isn’t necessarily a bad thing; just make sure that your leased vehicle has everything you want.
No matter which avenue you choose, you’ll have distinct advantages. Another great option is to ask the dealer what the best decision is for you. Then, the fun, exciting part of finding a car begins.