8 Advantage of Buying a Car Instead of Leasing a Car
Ever wondered why some people would go for the option of buying a car as opposed to leasing? Well, it is expected of you to exercise financial prudence in making the decision having deeply understood and weighed all the options of buying and leasing. Primarily, the cost-benefit analysis of the two alternatives shows that it is worthwhile to make the decision of purchasing a car.
Notably, purchasing a vehicle comes with the full rights of ownership contrary to leasing which barely entails temporary ownership. Taking into account the freedom exercised when driving your car after moments of leasing a car, it is much convincing to settle for the course of full car ownership. If you are a car enthusiast, it would be uncomfortable to have to stick to the strict rules and regulations of leasing a car such as driving not more than a specified mile in a year and keep the car in good shape or attract a penalty fee.
One of the setbacks is that at the end of the lease period you have to lease again, buy the vehicle at the lease-end price, which is determined in advance or consider leasing another car. You will have to ensure that you choose the best financial alternative which may require professional consultancy. For those who are not used to this idea may find it rather inconvenient and opt for buying option.
In the long-run, leasing a vehicle cost you more than the cost of buying if you retain it for long period. Also, some lessors may charge a down payment of more than 20% at the start and thereafter high monthly charges covering up for the value of depreciation of the car. Therefore, if you are planning on driving a car on a long-term basis, it would be advisable to settle on the option of purchasing a car from the beginning which is far much worth the cost.
For many people, the requirement by most leasing dealers that you take a high insurance cover may not come in handy always. In most cases the cost may be a liability coverage of $300000, making your premiums higher than if you had bought your car. Again this is a major factor to be considered if at all you are likely to have the car for long yet it is hardly familiar to many. Most people may not get the full picture of how leasing works beyond the monthly remittances.
Contrary to leasing, you could at any point decide to sell off the car you purchased if it no longer suits your needs and specifications. You are entitled to set your terms of sale such as payment conditions without the interference from any anyone. With a lease, it is unseemly to terminate it as it has stiff penalties to discourage that. It is more like an agreement which has to be adhered to throughout the period of lease.
Interestingly, buying a car particularly on loan provides an assurance that eventually you will clear off the outstanding amount and have it under your ownership in future. With a lease option, you will continue paying the monthly charges until you turn in the car to the lessor. Therefore, buying a car derives much pride and satisfaction in the long run.
In addition, if you are the kind of person who prefers a well customized car, leasing is not meant for you. After the expiry of the lease it is mandatory that you return the car in the very same state that you took it. This implies that under no circumstance should you alter the engine modification, exterior décor, accessories among others. This may not go well with you if you crave for a car that is exclusive in the eyes of the public. On the contrary, you are flexible to design the car you purchased to your needs and specifications.
Having gone through the above text, you would be in a better position to make an outright informed decision on whether to go for the option of buying a car or leasing, based on the prevailing conditions at the market. It should not be intricate for you to single out the best alternative that goes well with you.