If you are thinking about acquiring a new car, one of the decisions you need to make is how you are going to finance the vehicle and what type of ownership you are going to go for. Is it better to purchase a car? Or, would it be better to lease a vehicle? There is no right or wrong answer – it is all about determining what works for you. So, let’s take a look at the pros and cons of both options in further detail…

PROS OF LEASING A CAR / CONS OF BUYING A VEHICLE

Let’s begin by taking a look at some of the reasons why it is better to lease a vehicle instead of buying one. One of the main reasons why people prefer to go down this route is because they will not be responsible for any repair payments should anything go wrong with the vehicle. This ensures there aren’t any unexpected repair bills, which could put major strain on your finances. Instead, companies like Intelligent Car Lease will foot the bill for you. This makes money management a lot easier, as you will know exactly what you are going to pay each and every month.

In addition to this, if you decide that you want to change your vehicle, it is a lot easier if you have leased it. The process can be a long and frustrating one when it comes to selling a car that you own. Plus, a lot of people like the excitement of driving a new car every two or three years.

pexels photo 97075 - Car Shopping: Leasing vs. Buying

PROS OF BUYING A VEHICLE / CONS OF LEASING A CAR

The most obvious benefit of buying a vehicle is the fact that you will have ownership if your car. You can drive as many miles as you wish, and you can also customise your vehicle in any way you wish. After all, it is your car to do as you please with. This option can also be more suitable to some people’s finances, i.e. if they have a lump sum of money available to purchase a care outright. You also don’t need to worry about the risk of possible lease-end charges.

In addition to this, other cons associated with leasing a car include that you must have a stable and predictable source of income. If you are self-employed or you have a bad credit history, you may not be accepted for a car lease. Aside from this, you will pay more over the long haul to get the benefits from the lease, and you will typically need to purchase gap insurance too.

As you can see, there are pros and cons associated with both leasing and buying a vehicle. You simply need to decide what works for your situation. As mentioned, there is no right or wrong approach – it depends on your finances, your needs, and what you are comfortable with.