To lease or not to lease… It is a common dilemma many people encounter when they decide to have a new car. Buying a car, the old-school way is most of the times a good option. However, it is good to consider the ample of options available for leasing before making the decision.
Just like everything in this world, leasing or buying, both have their own pros and cons. Let's begin with the pros and cons of the old-school way,
Buying a Car.
Things that make you happy:
●You own the car, which means no obligation on driving or miles.
●Have a jazzy spoiler or that fire design above wheels, you can design the car the way you want.
●Your car insurance provides coverage for damage by accidents or loss.
●You can enjoy the benefits like a
no-claim bonus on your
car insurance policy.
●Your car is considered as your asset. The money comes after selling it goes in your bank account.
●You will be free from lease-end charges.
Things that don't make you happy:
●Buying a car is a long-term commitment. In case when you are not satisfied with the car you bought, it will be difficult to change in immediately.
●Monthly payment instalments of the car are costlier than lease.
●You need to maintain the condition of the car in order to have sufficient coverage provided by your car insurance.
Owning a car is a big responsibility. A lot of people want to have a car but they do not want the obligations that come along. For them, the best option is
Leasing a Car.
Things that make you happy:
●You can change the car in months.
●The lease amount is lesser than car loan instalments.
●Leased cars are mostly protected by warranty.
●You neither need to pay down payment nor sales tax. According to a website, the lease amount for entire life is roughly half the sales tax.
●You can afford any car as leasing requires significantly less money than buying it.
●Leasing a car is subjected to tax exemption to small businessmen.
●No regular maintenance as you can change the car.
Things that don't make you happy:
●The entire responsibility of repairing a car in case of an accident, despite having an insurance policy for the car.
●The leased car has limitations on distance and time.
●If any financial constraints occur making it difficult to pay for the lease, the owner recovers the car and sell it on auction. The leaseholder is legally liable to fill the gap between the price of the car when the sale amount is less than the money to be paid by him/her.
One must choose on the basis of needs. Lastly, regardless of you buy or lease a car, you should buy car insurance policy to stay financially secured during hard times. You can either consult insurance or check car insurance online.
