Leasing vs Buying Pros & Cons
Make no mistake about it. Getting a new car is one of if not the most significant expense we will incur other than a place to live. Unless you've saved up the money to pay cash then you will need to consider either leasing or purchasing. Every decision we make in life has pros and cons, here are the pros and cons of leasing vs buying:
Pros of Leasing
Usually you will have lower monthly payments than financing
You're always protected by the manufacturers factory warranty
There's an excitement attached to getting a new vehicle every few years
The hassle of trading or selling your car is no longer a problem of yours
If cash flow is the major concern then a lease might be a good option. Cars depreciate, leave the hassle of dealing with depreciating to someone else.
Cons of Leasing
Over the long haul you will more than likely pay more than if you had purchased
Mileage restrictions throughout your lease term
You must keep your car in great condition and maintained properly
Purchasing GAP insurance can be mandatory
Selling a vehicle rarely makes you money but at least you getting something out of it vs driving away with nothing when the lease is up.
Pros of Buying
Don't have to worry about miles and can drive the wheels off if you want
You will have ownership for your money spent
It's yours, you can personalize it to your liking
Longer terms can help you spread the cost to keep within budget
Helps establish trade-in or even resale value for down the road
I don't know about you but being able to do whatever you want whenever you would like to with your ride, and not having to worry about added fees, makes me smile. Just keep the maintenance up and it will last you.
Cons of Buying
Almost every situation you will have a higher monthly payment than if you were to lease
Will be up to you to trade or sell your now used car when you want something different
After the warranty expires it will be on you to cover the repair costs
Which Is Better For You?
In the short term the lease option seems cheaper, but in the long run, buying a vehicle is typically less expensive. It's up to you to weigh your options for your family or situation and decide which is a better fit.