Thinking about getting a new car? As excited as you may be at the prospect before you go any further you should take a step back and ask yourself: Do you want to buy one, or lease it?
The fact of the matter is that deciding whether you want to buy or lease a car could make a world of difference in both the short and the long term. Each option has its own benefits, so if you want to know which would be better in your case – you need to start there.
Why Lease a Car?
Leasing a car may not seem ideal at first because you won’t end up actually owning the car when the lease is done. However, it makes up for that fact with the benefits it brings to the table in other areas:
Lower upfront costs
The upfront costs of leasing a car are normally lower as it does not require a down payment. That being said there may be some fees that need to be paid.
Smaller monthly payments
Monthly payments on a lease tend to be much smaller than if you buy a car. However, you should calculate the payments
carefully to make sure you aren’t charged any additional fees.
Warranty on repairs
If you are leasing a car that is relatively new, it will probably have a warranty on repairs. That can help you to avoid a large and unexpected repair bill.
Buying a car is a long term commitment, and the financing alone will require a 9 to 15-month loan. In contrast, the duration on lease contracts is much shorter and is typically anywhere from 1 to 5 years.
In short, the cost of leasing a car is lower, and you won’t be locked-in for as long. On top of that nowadays there are lots of great deals available for all brands, such as the ones for a Chevy Bolt lease
Why Buy a Car
Although leasing a car may be attractive in some ways, don’t underestimate the benefits of buying a car. It has areas that it is actually better than leasing, the most notable being:
Lower long term payments
In the long term, buying a car will actually mean lower payments in the long term. That is mainly because you will own the car after you pay off the loan, and the longer you drive it around – the lower the overall costs will be in comparison.
Fewer restrictions and limitations
Car leases tend to have restrictions and limitations in terms of the overall mileage, modifications that can be made, and so on. If you buy a car you won’t have to worry about any such issues.
Option to sell the car
Although technically it is possible to swap a lease, you will not get much value out of it. On the other hand the option to sell your car
if you bought it can help you to recover some of the value.
Make no mistake there are several other benefits to buying a car as well, such as the option to choose your insurance coverage.
Which to Choose?
At the end of the day, you should decide whether you want to buy or lease a car based on your personal preferences – and your financial situation. The ‘better’ option is really just the one that will be the best fit for your circumstances.
Regardless of the option that you choose, you should carefully look at the contracts you sign and make sure that there aren’t any hidden fees or charges that you may end up having to pay.