Buy Car Vs. Lease
When deciding whether to buy or lease a car, ask yourself if you like to switch cars every few years, if you plan to keep a car a long time, how much you drive per year and if your finances are stable. Here are some helpful tips on how to make your decision.
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Pros of Buying A Car
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A main benefit of buying a car is that you own it after paying for it. You also have many options of choosing the type of insurance you want and you don't have to worry about extra mileage fees and paying hefty fees if you keep the car beyond the required limit. You can customize your car and because there are so many used car outlets, you can buy a car on a small budget.
Cons of Buying A Car
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They say buying a car is just like having a child; you spend a great deal of time maintaining it. If you do not want the hassle of oil changes, replacing flat tires, gas prices, transmission repairs or taking it to the shop when it breaks down, then this is not for you. Another disadvantage is that as your car gets older, it depreciates and the warranty may expire while you still have the car. Finally, be prepared to spend sums of money for purchase and maintenance.
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Pros of Leasing A Car
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Car leases are an excellent choice for drivers who change cars every three years and drive less than 15,000 miles per year. When you lease a car, the dealer lets you rent it for a certain period of time, then you return it. Your maintenance costs are included in the monthly payment and your warranty does not end during the lease. Leasing is also good if you want a luxury car but cannot afford to buy it right now.
Cons of Leasing A Car
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With a car lease, you have a limit of 15,000 miles per year, and if you exceed that, you pay extra fees. If you have an accident, your insurance pays only for what the car is worth. As a result, you still have the pay the company what you owe. You also have to return the car in very good condition or you pay more fees. Finally, you get penalized for terminating your lease early.
Other Resources
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The following websites are also very helpful in making your decision--cars.com, edmunds.com, bankrate.com and carfax.com.
Considerations
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Whether you decide to buy or lease, thoroughly research the type of car you want, the best price for it and how much you can afford. Don't let the car salesperson talk you into getting the fanciest or trendiest car.
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