You may often ponder upon the question whether it would be a smart option to lease the car or buy the vehicle. There have been several benefits associated to both leasing and buying the car. Which one would be right for you? It would depend on your needs and the situation. Prior to you deciding, let us delve on some of the biggest benefits and drawbacks of both car leasing and car buying options.
You are not the owner
Leasing your car would be similar to renting a house. While you are paying a price every month, you do not actually own anything at the end of the lease agreement. Rather you would be paying for using the car every month. It would be pertinent to mention, as after the lease expires, you may not own any part of the vehicle. It would also imply that you would not be able to sell the car at any point. Moreover, you cannot take a loan on the car under lease.
Need not worry about lease car sale
As you do not own the car, you do not have to worry about trying to sell the car when you do not wish to own it. This would save you even more money, as you do not need to worry about the depreciation value of the car or the value the leased car has lost. Rather, you would just hand it over to the rightful owner.
Cutting down upfront cost
Buying a car implies you would be required to spend plenty of cash at a single instance. You would be required to make the down payment, pay taxes and fees and avail special financing to assist you in paying for the car. This could burn a significant hole in your pocket along with your credit score. However, leasing your car does not need these kinds of costs. Rather, you would only be required to pay a deposit some fees and taxes.
At the end of the lease period, you should make the final payment and return the car to the rightful owner. When making your end payment, you would be given the option of purchasing the vehicle for a discounted amount. However, it would be imperative to remember that your lease payments would not contribute to the cost of the new car. In case, you do not choose to move forward on buying the car, it should be returned.