When it comes to shopping for a new car, there are so many factors to consider. After you have researched the car makes and models that catch your eye, you must begin to consider your budget. Does it make more sense for you to lease your new car or to buy the car and finance it? In case you cannot decide, the experts at DriversLicenseAdvisors.org have compiled a few pros and cons for you to consider on both sides. Continue below, so you can weigh out your decision with care.
The Pros and Cons of Leasing a Car
The team at DriversLicenseAdvisors.org believes that leasing can be a healthy option for car shoppers, so long as it is suitable in every way. When you think about leasing a car, you must weigh the advantages and the disadvantages. Some of the pros and cons of leasing a car include the following.
Pro: Down payments and monthly payments are fairly low – Since you are only in the possession of the vehicle for a portion of its life, you will not have to make payments as high as those required when financing a car, which takes into consideration the entire price of the vehicle. Leases also have low, if any, down payments associated with them.
Pro: You have the car for the best years of its life – The best part about leasing a car is that you get that new car smell, along with all the firsts. Leases that typically run for two or three years allow you to enjoy the vehicle. Typically, once you begin to notice any issues – which are unlikely in the first few years – your lease will be up and those issues won’t be your problem.
Con: The required maintenance and upkeep – When you have a lease, since you are not the official owner of the car, you must keep it maintained. This means performing regular and routine checkups, or you may face penalties when you turn in the vehicle if there are problems due to your negligence.
Con: Getting out of a lease is pricey – If you dislike your vehicle, or need to get out of your lease because of a recent life change, the dealership will not care. The team at DriversLicenseAdvisors.org warns that you will be stuck with a hefty bill if you try to get out of your lease early.
The Pros and Cons of Financing a Car
If leasing is not the most ideal strategy for you, then weigh the advantages and disadvantages of buying your car. When you finance a car, there is excitement that goes into the process, since this will be your “baby” for so many years to come. However, the experts at DriverLicenseAdvisors.org urge you to make an educated decision. Consider the following when you plan on financing a car.
Pro: You gain equity in the car – Essentially, when you finance a car, you are paying back the lender, who purchases the car on your behalf. During this time, you gain equity in your car. And you can basically do as you wish. Tint the windows, pimp it out with a new spoiler, install a new stereo, give it a facelift with a new paint job, and more. You cannot do any of these things when leasing a vehicle.
Pro: You don’t have to worry about your next vehicle – The best part about financing a car is that you won’t have to worry about shopping for a new car for many years to come. Some cars can last up to 15 years if they are properly cared for and maintained. Also, the experts at DriversLicenseAdvisors.org are here to remind you that when your car is paid off, you are free and clear for as long as you wish.
Con: It’s expensive if you are concerned about personal finances – Financing can be expensive. Your monthly payments are higher, and your down payment can amount to a large chunk of change. You must assess your financial situation very thoroughly before you commit to buying a car. If you are dealing with work troubles or money problems, a lease is likely the way to go, due mainly to the lower cost of the car, and the shorter contractual obligations.
Con: You are stuck with the vehicle if you don’t like it – Even though you may love your car the day you drive it out of the car dealership, what happens if you hate it in a year? You are stuck with the vehicle and have to take full responsibility while financing it. It takes a lot of work to convince another person to take over your payments, especially if they are extremely high. Sure, selling a car when it is paid off is a great way to make some side cash, but there are a lot of extra, moving parts involved when you are financing, which might prove to be a headache.