Hola bellas! Have you considered the differences between buying a car or leasing a car and which one makes more sense? If you haven’t, you’re in the right place! I will explain the differences between buying and leasing a car and will go over the pros and cons for both.
Differences between buying and leasing a car
When you lease a car you don’t own it but you pay to use it for a specific amount of time. Most leases are 36 months, but you can find longer and shorter leases. There are restrictions on how many miles you can drive and what changes you can make to the car. Once the lease term ends you return the car or you’re also able to buy the car at a predetermined amount that was stated in the lease contract
When you buy a car, you’re the owner of the car. You can pay for it in cash or you can take out a loan to pay It off in a few years. You don’t have mileage limits and you’re not able to customize you car any way you like. Additionally, if there is any damage done to the car, you have to pay extra fees for them to make the repairs.
Pros of leasing a car
Drive a new car
When leasing a car, you lease a brand new car and get to enjoy It before anyone else does. When your lease term is up, you return It and you can lease another new car. When leasing new cars, you get to enjoy the latest technology in cars.
Lower monthly payment
Leasing a car involves a lower monthly payment because you’re borrowing the car for a specific amount of time. It also involves a smaller down payment, compared to buying a car. This means that you can lease a nicer car than you would usually be able to buy.
Lower maintenance costs
Since most leases are usually 3 years long, there are usually not many car repairs that need to be made during this time. Usually most new cars have a warranty that lasts at least three years, so if there is an issue with the car, the repairs are usually covered.
You don’t have to worry about selling the car
When the lease term is over, you return the car and don’t have to worry about selling the car to get some of your money back.
Potential tax deductions
Cons of leasing a car
No Ownership
When you lease a car, you pay a monthly payment for a set amount of time (usually 3 years), but you don’t own the car. You are limited on the number of miles that you drive.
Fees
Leasing a car involves extra fees for things like driving more miles than your contract states, if you end the contract early, if you make any changes to the car or if you damage It.
It’s usually more expensive to lease a car than buying one and keeping It long-term.
Pros of buying a car
Have Control
You’re able to make changes and modifications to your car, because you own It. There are no restrictions. You can keep It for as long as you like and you don’t have to return It after a certain number of years.
No Fees
There are no fees for driving It as many miles as you’d like. You also don’t have to pay for fees for wear and tear since you own It.
Less Expensive
It’s usually cheaper to buy a car and keep It long-term than It is to lease a car.
Cons of buying a car
Loss in Value
Cars lose a big portion of their value in the first few years, but if you buy the car used or you keep It for many years, then It won’t have a huge impact.
Repair Costs
When buying a used car, there could be repair expenses that are no longer covered under warranty and that you would have to pay out of pocket.
There are many pros and cons to buying a car and leasing a car. If you’re thinking about saving the most money and what might be the best financial decision, It might make the most financial sense to buy a used car that is certified and keep It for many years.