When it comes to vehicle shopping there are more things to consider than which model or which features you’d like. One of the biggest questions is whether you should buy or lease your vehicle. Everybody seems to have an opinion, but there isn’t one right answer.
There are several factors to consider, and there isn’t a one-size-fits-all answer. Take a look at some of the pros and cons of both buying and leasing a car to find out which option is best for your budget and lifestyle.
Pros of Buying a Car
- The car is yours! Well, once you pay off your loan, that is. After that, never worry about monthly payments ever again. Have the freedom to drive without worrying about mileage, or modify your vehicle as you need.
- If you can afford a large down payment, you can drastically cut future monthly payments.
Cons of Buying a Car
- The minute you take the car off the lot, it depreciates.
- It’s going to cost you a bit up front. Dealerships will often charge you up to 20% at the time of purchase. If you don’t have some cash saved up, you’re going to run into a bit of a problem.
Pros of Leasing a Car
- You won’t have to pay as much up front, and monthly payments are often lower. You may be able to afford a nicer car by leasing.
- Stay current and easily upgrade to the newest model every few years.
Cons of Leasing a Car
- Leases can be restrictive and are expensive to break. Make sure you examine all the fine print and follow the rules accordingly to avoid penalties and extra headaches.
- You’re essentially renting your car. You aren’t gaining any equity, so if you’re looking to put a down payment on a new vehicle, your finished lease won’t be able to help you.
In the end, it’s up to you to weigh the pros and cons and select the option that best fits you.