Whether leasing or buying a new car, the decision to add a new vehicle to your life is always a big deal.
Perhaps you’ve just moved to a new city and public transportation won’t do to get you to and from work, or you have new additions to the family – sometimes getting a car is the only choice.
But as for what is the best decision – leasing or buying a new car – this will depend on your needs, financial situation and more.
Some people prefer the prospect of owning a vehicle, whereas others might benefit from driving a car temporarily without being tied down by an auto loan.
Here’s a comprehensive guide from Quick Car Removal Melbourne on the Pros and Cons of Leasing Versus Buying a Car
The Pros of Leasing a Car
There are many benefits of Leasing a Car and for many it is the ideal situation.
Some of these pros include:
- You will typically have lower monthly payments compared to a car loan
- Your car is always protected by warranty
- You don’t have to worry about selling or trading your car when you’re done with it
- You get the pleasure of driving a new car every 2 or 3 years
- You don’t have to be locked into a long-term financial commitment
- You have less hassle when it comes to maintenance and repair
Leasing a car is a great way to keep your monthly payments low and can be up to 60 % lower than payments made for a typical personal car loan.
The warranty is always a major advantage – you don’t have to experience the stress of the need for repairs after warranty ends.
Leasing also means that when you’re done with the car, you’re done – you don’t have to worry about selling or trading it.
The Cons of Leasing a Car
Leasing a car advantageous for some, but it can also come with some cons depending on what you’re looking for.
Some of these cons include:
- You need to have a stable and predictable income
- You will likely have to pay more in the long-term than when buying a car
- You must consistently and efficiently maintain your car
- You are only allowed to drive a set number of kilometers through your lease
- You often must purchase gap insurance
In order to maintain consistent and regular payments for you lease requires that you have predicable and stable income.
If you lose your job, you might be in for a problem.
Leases also have lots of terms you have to meet, so it is very important to read the fine print.
Not adequately meeting these terms or paying the required fees and create penalties.
The Pros of Buying a Car
There are many benefits of buying a car rather than leasing it.
Some of these include:
- You will have full ownership of your vehicle
- You will have the freedom to customize your vehicle however you like
- You can drive as many kms as you want
- There is no risk of lease-end fees
- Can get more value for your money by driving it for years after payments stop
- You can build up resale or trade-in value
- You Can Resell It When You’re Done with It
Buying a vehicle comes with the comfort of knowing that you own it fully and it’s yours to do what you want with it.
You won’t have the eternal stress of having to pay for lease as long as you own it.
As long as your vehicle is well maintained and insured, you likely won’t lost out financially.
Owning the vehicle will also decrease the pressure of having to drive it all the time due to regular leasing fees.
You could take a holiday for a few months and your fees won’t be a waste of money.
The Cons of Buying a Car
As good a feeling as owning a car is, buying a car can have its cons too.
Some of these include:
- You will have higher monthly payments compared to leasing
- You will have post-warranty repair costs
- You will be responsible for trying to trade or sell your car when you want a new one
- It is harder to end financial responsibility for the car than leasing
Buying a car can potentially mean a lot more responsibility and hassle on your part. Unlike leasing a car, to say goodbye to your car requires a lot more effort such as dealing with your car’s sale, handing over ownership as well as possibly dealing with repair costs outside of warranty.
As you can see, there are many advantages and disadvantages of both leasing and buying a car, and it really depends on the contract and financial situation that suits you.
If someone is living somewhere semi-temporarily for work, it would make sense to lease a car rather than buy one. However, if prefer the stability of owning a vehicle, buying it would suit you best.
Want to get cash for forklifts, cars, vans, trucks, 4WDs or SUVs? Get in touch with Quick Car Removal at 0481 332 220.