Some of us choose to buy cars and some of us choose to lease them. But which is the best – buying or leasing? Is leasing a car a cheaper option?
What’s more important for you - lower monthly payments or long-term cost savings? Intimidated by the rising car prices? Wondering if you should lease your next car? How do you make the right decision? Read right on to know.
Why you should BUY your next car?
With the increasing demand for car financing, you’re sure to enjoy competitive interest rates and convenient repayment terms. And at the end of your car loan term you’ll own the car you opted to buy. If you opt for a car lease, however, you’ll have to return the car to the dealer at the end of the lease term.
You can exchange/sell your car when you want to. Although its value would have depreciated, your car still remains a saleable asset. You can’t exchange/sell a leased car. What’s more, you don’t have to deal with any charges for excessive wear if you own the car. So if you plan to use your car for a long period, its best to buy it.
Why should you LEASE your car?
Want to pay for what you use? Leasing a car is the best option for you! If you need a car for business purposes, the obvious choice is leasing. You’ll benefit from tax deductions, too. Your lease payments will turn out to be cheaper than monthly loan payments, which make it a cost-effective option.
Take a look at your financial situation
Before you decide to buy/lease your next car, you need to know whether you can afford to buy a car, pay monthly payments or even the lease payments every month. Leasing a car might appear to be a good option if you can’t afford the initial costs associated with buying a car. But remember that if you terminate your lease or default on your lease payments, then you’re liable for financial penalties.
Buying or leasing a car – which is a better option? Did you face a similar dilemma at some point in your life? What did you choose? Tell us about your experience.
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