Should I Buy or Lease a Car?

For most people, a car is among their most important and expensive possessions. There are many concerns when it comes to acquiring a vehicle, but perhaps chief among them is whether to buy or to lease. Both options have their advantages and disadvantages, and choosing the wrong option for one’s lifestyle essentially results in throwing money away.

Buying Pros

Purchasing a car provides you with a great deal of flexibility. You can personalise in any way you see fit, even if you still owe money to the bank. You can sell the car or trade it in at any time. The mileage isn’t limited, and you don’t suffer any direct penalties due to excess mileage. Buying can also be quite economical long term, particularly if you avoid early depreciation.

Buying Cons

Buying a car typically requires you to make a larger down payment and be on the hook for a higher monthly payment. You’re also on the hook for all maintenance once the warranty expires. Selling or trading can be a hassle, and there’s a lot of cash tied up in your owned car, which is always depreciating.

Leasing Pros

Car leasing available at Lease Cars Direct requires a lower down payment and lower monthly payments. It also allows you to drive a better quality of car. For instance, for many people, owning a Mercedes is not an option but Mercedes leasing is, available at Lease Cars Direct. Leasing allows you to drive a new car every two to three years, and the warranty covers nearly all repairs for the entire lease period.

Leasing Cons

Mileage is set to a fixed amount, and if you exceed that amount, the fees can be significant. If you abuse the car, wear-and-tear fees can also be significant, and all fees are due immediately at the conclusion of the lease period. If for any reason you need to break the lease, termination will be expensive.

When to Buy

Buying a car makes the most sense when you plan to own a vehicle beyond the five-year mark. Keep in mind that a car will require its most expensive maintenance and repairs at that point, but you can offset those costs if you are someone who is able to perform a majority of the work yourself.

When to Lease

As a rule of thumb, when in doubt, lease. The majority of vehicle owners are on a 3-5 year cycle anyway. With leasing, you keep your monthly costs low, and you ensure that you get to drive a nice car. Most people who buy do so because they imagine a period of no car payment, but unless you’re a mechanic, you’re going to being paying for upkeep one way or the other.