You have browsed a dealer's inventory, and you have your heart
set on that brand new car; the only thing left to do is to decide
whether you want go with buying or leasing a car.
While you likely know the basic differences between the two options--buying means paying cash or borrowing money in exchange for ownership of a car, and leasing a car is essentially a long-term rental--it is understanding the benefits of each that should guide your decision. This article will explore the pros and cons of each choice, so that you can get the technical stuff out of the way and move into your new car.
Cost
If you want the lowest possible monthly payments, then leasing a car is without a doubt your best option. In most cases, leasing a car will save you well over a hundred dollars--if not more on your monthly bill.
Flexibility
Many people go with buying a car because they know that this option will ensure that they have a car as long as they keep up with their payments. What most people don't realize is that leasing a car offers the same benefits; once your lease is up, you have the option of keeping your car.
Discounted Purchase at End of Term
You can use the money that you have been paying towards your lease against the vehicle's value--this is a great way to dodge some of those interest fees that would have otherwise been piled up through financing. This purchase deal is usually at a preset price that protects you from the uncertainty of changing markets; it often results in a bargain discount for buying the car at the end of the term.
Discounted Future Lease Agreements
You also have the option of moving into a new lease agreement. If you decide to go this route, leasing companies will offer loyalty deals for your continued business, which equates into a lower monthly payment.
Swap a Lease like Selling a Car
Another benefit exclusive to leasing a car is the ability to assign your contract. That's right: If you are no longer able to keep up with your lease payments or you just want to get rid of your car, you can sign the contract over to another qualified individual. There are entire marketplaces dedicated to this practice, and in some cases, people will even pay you a fee for signing your contract over.
While you likely know the basic differences between the two options--buying means paying cash or borrowing money in exchange for ownership of a car, and leasing a car is essentially a long-term rental--it is understanding the benefits of each that should guide your decision. This article will explore the pros and cons of each choice, so that you can get the technical stuff out of the way and move into your new car.
Cost
If you want the lowest possible monthly payments, then leasing a car is without a doubt your best option. In most cases, leasing a car will save you well over a hundred dollars--if not more on your monthly bill.
Flexibility
Many people go with buying a car because they know that this option will ensure that they have a car as long as they keep up with their payments. What most people don't realize is that leasing a car offers the same benefits; once your lease is up, you have the option of keeping your car.
Discounted Purchase at End of Term
You can use the money that you have been paying towards your lease against the vehicle's value--this is a great way to dodge some of those interest fees that would have otherwise been piled up through financing. This purchase deal is usually at a preset price that protects you from the uncertainty of changing markets; it often results in a bargain discount for buying the car at the end of the term.
Discounted Future Lease Agreements
You also have the option of moving into a new lease agreement. If you decide to go this route, leasing companies will offer loyalty deals for your continued business, which equates into a lower monthly payment.
Swap a Lease like Selling a Car
Another benefit exclusive to leasing a car is the ability to assign your contract. That's right: If you are no longer able to keep up with your lease payments or you just want to get rid of your car, you can sign the contract over to another qualified individual. There are entire marketplaces dedicated to this practice, and in some cases, people will even pay you a fee for signing your contract over.
