Saving Money: Which is Better – Buying or Leasing a Car?
Currently, buying a car is not the only way to own a vehicle. Leasing a car has become an available option for a majority of people. Despite, leasing being a reserve for luxury or cooperate customers, it has now become available to any car buyer with excellent credit. However, the debate continues whether leasing a car is better than buying the vehicle. Here are some few factors that are helpful in comparing whether buying a car is better than leasing one.
- Purpose of the Car
The most important question to ask yourself before acquiring a vehicle is what the purpose of the car you want to purchase is? Is the car for personal or business use? If the car you want to obtain is for business purpose then leasing a car may be the better option.
Leasing a car for your business prevents you from paying initial payments to the car. You also do not get to pay the depreciation costs unlike buying a car. When buying a car for your business, you will have to pay for the depreciation, among other additional costs. Buying a car becomes better when it is for personal use.
- Savings for deposit and initial payments
A majority of car lease agreements come with low down payment requirements. You can also get the car lease dealer to waive the down payment, and you can pay less for the sales tax on the car. Unlike buying your vehicle, where you require to pay the whole amount upfront or in a series of months. The down payment of a new car cannot be waivered.
Leasing, therefore, has a lower impact on your cash balance and budget unlike buying a car.
- The car’s mileage
If you drive a mileage of over 10000 to 15000 miles, then you may have to pay more for every mile depending on the lease agreement. However, when you purchase a car, you do not have to worry about the mileage use since it accounts as part of the depreciation of the vehicle.
- How hard you are on the car
If you are prone to wrecking your vehicle or scratching it, then a car lease may not be the best option. The reason for this is that the wear and tear fees may be more than you may handle. However, the fee for wear and tear depends mainly on the lease agreement.
- Car leasing deals
When it comes to car leasing deals not all of them are the same. You may find some lease agreements are better than others are while other arrangements may be binding than others. Choosing the right deal will help you decide whether leasing a car will be a better option from buying one. To help guide you on the proper leasing agreements, you can have a look at some leasing companies.
You can also find car leasing agreements on the intelligent Car Leasing website.