For many of us a car is a necessity. The next car purchased is usually done when the previous car has begun showing severe signs of deterioration. We have spent too much money on ongoing repairs, or the car is no longer adequate to meet our family’s needs. To purchase or lease a car is a consideration that many buyers consider. The principal thing in buying or leasing a car is the purpose for which the car will be used for and how much wear and tear will be put upon the car in a 3-4 year period. Leasing a car has restrictions based on mileage used per year. When a leased car is returned to a dealer, high mileage is unacceptable. Therefore if a person is going to have to put many miles on a car, it is best to purchase the car. If that is not the case, leasing may be feasible.
Another consideration for leasing or buying a car is your own budget. Leases are generally given to those who have good credit and a fair amount of money down is required to begin the lease. On the other hand, if a person buys a car, they may wish to offer a trade-in as a down payment. When buying a car, there seems to be more conventions available than in leasing. When buying a car, sometimes just a small down payment is required, and at other times, zero down will get a person into a car with excellent credit. As in the case of most leases, the leased car is new, whereas a car that can be bought may be be old or new. Some buyers prefer classics which are 20 years old and some like antique cars that are in mint conditions. So a wider spectrum of what is being offered is available to the purchaser who desires to buy.
In both cases insurance is needed. When leasing a car the person leasing must have full coverage insurance. When any car has a a lien on it, meaning there are payments being submitted to purchase the car, full coverage is required. If a person, however, can pay cash for a car, they can purchase the minimum amount of insurance allowable by law which is called liability. This form of insurance is cheaper. Full coverage is needed when paying for a car for as long as the lending institution has a lien on it. When it is fully paid off, the buyer may opt out and take a liability insurance package.
Owning a car is a responsibility. Whether you desire to lease or buy, you will have registration and drivers licenses to purchase. Along with car insurance and gasoline, you will always be out of some money. Even if you choose an electric powered vehicle which has mileage limits or a car that runs on electricity and gasoline, you will have to decide which one best meets your needs and your family’s needs and budget.
Back in the day when a automobile had parts that were easy to find and easy to install, car ownership was simpler. Today, with the wide variety of makes and models, choosing a car is no easy task. Rental agencies purchase fleets of cars from dealerships that lease, and the once leased cars are sold at blue book value at the time of purchase. Whatever you decide to do when getting another car, make the situation fit for you. Be the driver and don’t let the decision drive you.