Is leasing or buying a car better?
Tacoma vs. Tundra – which one should you lease or buy? What are the benefits of leasing and buying? Questions like these may have plagued you, but the truth is, there’s no clear cut answer as to which is better. The decision really depends on what your priorities are.
Both have their fair share of pros and cons and can meet your needs. So, if you’re looking for the next car in Fayetteville, Benson, or Goldsboro and seemingly confused about whether to lease or buy it, here are the pros and cons of each to ease your decision.
Pros of Leasing
Leasing allows you to make lower payments on a monthly basis. You’ll also benefit from a significantly lesser down payment and manage to save on sales tax depending on your location and its governing laws.
You also get warranty coverage for the lease period, except, of course, if you’ve taken an unusually long lease term or drive over the mileage limit mentioned in your lease contract.
You can experiment with varying cars every time your lease term ends, which would give you an idea of the functioning of different models and their latest offerings. End-of-lease closures are also hassle-free.
Cons of Leasing
With leasing, you don’t have ownership over the vehicle and also must stick to the mileage limit specified in the contract. You also can’t make efforts to customize your ride, and there may be usage restrictions on leased vehicles.
Pros of Buying
When you buy a car, you don’t have to worry about a mileage limit and can stop making payments when you’ve paid off the loan. You can trade-in for cash to put towards the next vehicle you buy too.
Financing also tends to be easier for purchases compared to leases, and refinancing can go a long way to help you save money in the long run.
Cons of Buying
High monthly payments are needed on purchases made. You may also be required to pay a higher sales tax.
The warranty on purchased cars will come to an end, and after that, out-of-warranty coverages need to be made by you. You also have no way of accurately determining the future value of your vehicle when you buy it.
If you have the money to pay upfront, buying may be a better option for you. But if you want to pay lesser and benefit from more variety, leasing can satisfy your needs.