Is it better to lease a car or buy a new one right out of the garage? Many will say that buying a car is the only way and that it is probably better for your finances and your rights in the long run. If you’re willing to make higher monthly payments, then buying a car could be the best option, but not everyone has the finances to do this. Leasing or renting a car, on the other hand, can be a much less expensive option and it is also very good for someone who likes to change their cars up often and get different things from different cars; such as enjoying the thrill of a sports car one month and enjoying an SUV with the family the next. If you enjoy travelling often or you work long distance, you may afford a car or it may be a fun and exciting option to hire a ute and do it yourself.
What types of care you like may depend on what type of deal you will go for. Some people may want to have a Jaguar to feel the rill of a big engine, or maybe something more sport designed such as a Mitsubishi outlander. So let’s weigh up the pros and cons of hiring a car month by month to see if it is a viable option:
- You have much lower monthly payments. Often this will be with a low down payment or none at all.
- You can drive a better car for less money more often.
- You will have lower repair costs or none at all, because your leased car will already be under warranty.
- You can change up your car much more often, and even transition every two or three years.
- You won’t have to deal with any trade-in or selling issues and will be guaranteed a new car.
- You will pay less sales tax.
- You will not actually own the car at the end of the lease but some companies will give you the option to buy.
- Your mileage will probably be typically limited to 12,000 miles a year.
- Contracts may seem full of difficult jargon and terminology which could confuse someone who isn’t ofay with the language of leasing.
- You’ll pay more in the long run if the car is kept for many years.
- If you have a lot of wear and tear on the car, you could incur charges which may be added at the end of your lease and be pricey.
- If you want to end your lease, it could be costly to break the lease.
So the decision is ultimately up to you but there are benefits and drawbacks depending on what you prefer. Having a car is such an important thing to have in your life and can really assist your career as well as your lifestyle. Be sure to shop around before choosing to lease and look at hidden costs. Then make your decision.