The automobile is a big industry in the United State. Almost every family has a car now. When considering a new vehicle, you have to make one decision, which is whether you want to buy a new car or just lease one. You can feel just a bit confusing. Luckily, after our discussing, today we can provide to you some of the benefits and drawbacks of each option, both financial and otherwise. Please keep in mind if you’re planning to have a new car.
Toward to leasing a car, I will ask you to think how many miles you drive per year, and what your insurance will cover. Because one of the downsides to leasing is higher insurance premiums. You also have limited mileage you can put on the car and if you go over, you will be charged per mile.
The benefits of leasing a car are obvious,
- The monthly payments to lease a car will often be lower than financing the same car.
- With leasing, you could avoid many car cares and repairs costs since the car still stays under warranty.
- With leasing, you will be able to drive a new car every few years.
- With leasing, you avoid the first-hand cost of depreciation and you usually have the choice to buy your car at the end of the lease for a good price.
- One of the downsides to leasing is higher insurance premiums. You also have limited mileage you can put on the car and if you go over, you will be charged per mile.
Toward to purchasing a car, you will have the pros and cons below,
- At the end of your loan, you own your car outright and have built up equity in your car.
- You take the full brunt of depreciation
- Considering purchase price, depreciation, and resale value after 6 years, purchasing new will ultimately cost you less money.
- You can sell your car whenever you want.
- You can make a modification to your car.
- You can drive as many miles as you want.
In the end, you have to choose the option that is right for you. Weigh all the factors, how much money you have to spend, do you want to drive a new car more often, and more.