February 04, 2013

The Pros and Cons to Buying Versus Leasing a New Car

Are you in a quandary about whether to buy or lease a new car? There are pros and cons with both options. Read on to find out what they are.

Pros and cons to buying

• One of the biggest pluses to buying a new car is that you own the vehicle. You can add whatever features you would like to the auto and even get a new paint job. The car can be customized so that it will really reflect your personality and tastes.

• On the downside, you also take full responsibility for initial depreciation as well as further depreciation over the course of your car loan.

• Another advantage to buying a car is the comfort you experience driving the same vehicle. You can bond with your car and not need to worry about returning it to the dealer later.

• Buying a vehicle may be cheaper in the long run. When you lease, once the first lease agreement is up, you will need to obtain another car, and payments begin all over again. When you buy your car, once your vehicle is paid in full, you no longer need to make payments.

Pros and cons to leasing a car

• If you enjoy driving a different type of car on a periodic basis, leasing will give you that opportunity. You can experience much diversity in your vehicles.

• When you lease your vehicle, your downpayment will often be lower. In some cases, you can even negotiate to have the downpayment eliminated.

• On the negative side, since you do not own the vehicle, you will not be able to add features to it, get a new paint job, or customize it to your desires. The car will have to stay exactly as it is.

• Another plus is the fact that when your lease agreement is over, it is a relatively simple matter to return the car to the dealer and lease another one. You will not experience any of the headaches that go along with ownership. Of course, you will also not experience any of the pleasures.

• Leasing a car means mileage limitations. You will not be able to drive the car over a specified amount of miles without being penalized.

• When you lease, you will not have the same worries about the expense of wear and tear on the vehicle as you would with ownership. On the other hand, the vehicle must be returned to the dealer in excellent condition when leased, and if you are somewhat rough on your auto, you might be better off owning it.

Only you can decide what will work best for you, leasing or buying. The above facts should help you to make a wise decision.

Melanie Lewis writes for a website that has information on new car financing and leasing, as well as other useful tips for car buyers.

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