Car Leasing Guide: Leasing Vs. Buying

Confused about whether or not you want to lease a car or buy a car? There is actually a difference between the two and this car leasing guide will help you weed out the advantages and disadvantages of the two.

First off, we have to find out just how to define the two terms, since no car leasing guide will tell you what it is exactly. Leasing is basically just another method for paying for a vehicle, no matter what model or make it is, over a specific amount of time, usually 3 to 5 years. Now, it may have similarities to renting but there is a difference with that as well. The difference is that when you rent a car, it's yours for 24 or even 48 hours. Leasing, on the other hand, means that you get to keep the car for a minimum of 24 months or two years. Buying a car is totally different. There may be 3 to 5 year plans with monthly payments but at the end of the contract when all payments are made, the car is actually yours to keep or do whatever you please.

Now let's look at the car leasing guide advantages and disadvantages of the two:

Leasing: The best thing about car leasing is that you spend a lot less when it comes to getting the actual car and maintaining it. Getting a lease that you can make little or no down payment at all. There are also no sales-taxes to pay and the monthly payments are significantly lower than if you were to buy a vehicle. And another thing? Every couple of years, you get to own a new car. Now, the disadvantage of a lease is that you will always have a bill to pay as far as car payments are concerned. You never really own the car as long as you are leasing it. When a lease term ends, you give back the car to a dealership and look for another lease or you can finance the remaining value and start loan payments. A lease will also restrict you with the number of miles that you can use each year and you pay extra if you go over your limit.

Buying: Any car leasing guide will tell you that buying car is best because at the end of payments, the car is yours. This means that payments for the car will end eventually and the car is also not tied to a dealership which means that you are free to sell it any time you want. There are also no restrictions on mileage since the car is yours so nobody can dictate or charge you extra for any amount of miles. The downside to buying is that the down payment is always significantly higher than that of a leased car. So initial payments and monthly payments are much higher. Maintenance costs will also fall into your hands and you won't have the luxury of owning a new car every 2 or 3 years as that is not an option.

Weigh out the differences between leasing and buying before entering the dealership. Calculate what kind of money you are willing to spend. Leasing is probably one of the most practical ways of getting a car because it's cheap plus you get to choose new cars every 2 or 3 years. But if you truly value ownership than buying a car is the way to go. Check your local car leasing guide and ask your dealer for other advantages when it comes to leasing a car.