For owning a car one can either lease or one can buy the car. But most of the people get confused whether to buy a car or lease a car. Based on the requirement and the usage one can buy a car. Even some of the people have the misconception that leasing will be expensive when compared to buying the cars.
See the differences between the leasing and buying for deciding which is better option for you.
Buying a car:
- Monthly payments for the car loans will be higher as you own the vehicle.
- You should use the car for a long time as you bought by investing a lot of money.
- Repairs cost should be afforded by you.
- You can use according to your wish.
- You can even make changes or customize the car. You are free to set your mileage.
- You can sell the car at any time.
- Insurance premium costs are higher.
- Sales tax should be paid.
Leasing the car:
- Monthly payments are less when compared to the buying costs.
- You can can lease a new car for every 2- 4 years.
- Mileage per year will be set by the dealer or the owner.
- You should maintain the car in good structure.
- No need of paying expensive repair costs.
- Sales tax will be less when compared to the buying tax. Sales tax should be paid on the monthly basis.
- Most of the banks will lend more for leasing rather than for buying a new car.
- At the end of the leasing, you can go for returning it, if you can afford it buy it or you can extend the lease.
So, these indicate some of the differences of buying and leasing. If you want to change the car and are using it for the business purposes, you can lease a car. If you want your car to be with you life long then opt for buying.