So, it’s time for your next car, but you’re not sure whether to buy or lease it.
There are pros and cons to both, so the choice really is down to what will benefit you most. Some people always lease and wouldn’t do it any other way, whereas other people would never dream of leasing and always buy their own cars.
So what are the pros and cons to both, what are the implications of both and which one is best for you?
Here are a few things you might want to consider:
Leasing will probably mean that you have lower monthly payments than if you were to get a loan to buy a car; however, to qualify, you must have a stable source of income. The dealers you are renting from will need to see that you have a stable and predictable lifestyle – or at least a stable and predictable source of income. If you lose your job or get sick, then this can have a significant impact on your finances, and it can be quite challenging to get out of a contract – far more difficult than it would be to sell your car if you couldn’t afford to run it anymore. It’s essential to have a backup plan in case something like this happens.
There are lots of terms to leases that you have to meet, or you will have to pay fees. You must keep on top of the car’s maintenance. If you’re not aware and careful of this, then this could end up costing you a lot of money too. Make sure you always read the fine print. While financially, it might seem cheaper every month, overall you are likely to pay more overall than you would if you had just bought the car.
However, remember that when buying a car, you have a lot more responsibility and there could be unexpected repair costs once you are out of the warranty and you will have the responsibility of trading or finding the best place to sell a car if you want to sell up and get a new one. Leasing also means that you’ll get a new car again in two or three years, which is always exciting.
Leasing means that you will have a warranty to protect you so if you lease your vehicle; you never have to worry about anything happening to it, no matter what, you will be covered.
Then when it comes to the end of the lease, you don’t have to worry about selling the car, which can be stressful, costly, and time-consuming.
There will be a limit to the number of miles you can drive whilst you are leasing, whereas if you buy the car, you own the vehicle and can drive as much as you want to.
As you own it you can also do what you want to your car and customize it however you want, and you can also keep your vehicle for as long as you want.
In the end, it comes down to what is right for you, and it’s always a good idea to research both options, look at your finances and see which one will be the most viable option.
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