In the past, no one could ever dream of having a different opportunity in terms of ownership, whether it was about a house, business or means of transportation –of course, we refer to cars. Here it is now: leasing. We are living in a world where you don’t necessarily have to own a product in order to be able to use it. That is fact. But simply benefiting from the use of such a product is costly. That is also fact. So, when contemplating between leasing vs buying, how does one choose?
The most intelligent way to make a decision is to take into consideration pros and cons and decide according to your needs, desires and interests. Let us check a few facts: low down payments and low monthly payments -you can just adjust your payments in a way that suits your pocket: for as long a time as you want and the value is not necessarily inflexible, also calculated according to your “financial plans” so to speak. Also, bear in mind that you are not paying the car’s full value but merely paying off the depreciation on the car, consequently your monthly payment should be lower than the actual purchase of the car. But, the most important and one very attractive aspect about leasing is this: when you’re kind of tired of the car, feel like changing it, you do not need to worry about selling it, simply go to the dealer and he will take care of replacing your car with a different one, according to your needs so you can drive off with full satisfaction guaranteed.
But, to be honest and fair toward the two leasing vs buying, there might be some downsides: mileage charge. In general, lease agreements grant up to 15,000 miles per year (drivers average 15,000 miles per year), so you might want to negotiate and buy more miles at a reduced rate up front. Also, as long as you have settled a term, ending the settlement earlier also brings extra costs.
Last but not least, if you are more interested in owning the car, than perhaps leasing is not exactly what you are looking for, because when payment ends you cannot just drive off..