The age old question when buying a car is whether or not you want to lease a car, or if you want to buy the car outright. Which one is better? Well that really depends on your overall situation, and how you will use the car for the next few years. Will you keep the car for a long period of time, or are you just getting it because you liked it, but might want to get rid of it in a couple of years. How much do you want to pay for a car, and how much will you drive it? Considering these factors will really help you figure out which is best for you.
When you lease a car, you are making a shorter term commitment. A lease is typically two to three years in length, and then you will either decide whether to purchase the car, or return the car to the dealer, and get another one. When the lease is up, you should find out what the residual is on the car, or how much is left for you to pay on the car. Sometimes you can get a really good deal on a car by leasing it, and then just paying off the rest when the lease is up.
Also when you lease a car, you are limited as to what you can do with it. Most leases will limit the amount of miles you can drive, and you will have to pay for each mile that you drive over that set amount. If you drive a lot, you could be paying a lot of money in extra mileage. If you like to drive, it might be easier to just go ahead and buy a car.
Basically when you lease a car, you are being granted the right to own the vehicle for a set amount of time, and with conditions set by the dealer. Leasing a car is like leasing anything else, you are basically paying someone for the right to use something. Whether you are renting an apartment, or a building, or buying a seat to a football game, you aren’t really the owner of the property, and sometimes it is better to just be the owner.
Owning a car means that you will have the car for however long you want it. You will be responsible for the loan, and have to make the payments on it for a longer period of time, but you will own it. It is yours to keep, and there is no obligation to return it at any time. If you drive a lot, owning makes sense, as you don’t have restrictions on how you can use the car.
When you own a car, you can try to get more for it when you go to trade it in later. If you lease a car, the car just goes back to the dealer, and there isn’t a whole lot you can do. If you own a car, you can trade it in and get some value for it, or sell it to a private buyer and make money off of it. Obviously, if you don’t own the car, you can’t sell it, which is a disadvantage to a lease.
So should you lease, or should you buy? It really depends on your situation, and what you want to do with your car situation. Either way you can get a good car, and keep it for an extended period of time. A lease is like a really long test drive, while owning it gives you more control over how you use it. Personally I would rather just own, not lease, but the decision is yours to make.