Getting a car can be very overwhelming. The pleasure of getting a new car can be quickly bombarded during the financing decision-making process and negotiations of the price. In getting your own vehicle, there are two options, lease or buy.
In buying a car, you either pay cash or apply for a loan to cover the cost. The benefits of having your own car is one day, you will be free from all the other payments. You can upgrade your car and sell it in the future anytime and you are not locked into any kind of permanent ownership period.
If you also buy a car, the insurance incentives are usually lower than if you lease. Aside from that, you are also free to adjust the mileage without having to worry about financial penalties or restrictions.
However, in buying your own vehicle, the monthly payment is usually higher. The easiest way to pay lower monthly is to pay the down payment higher.
On the other hand, leasing a vehicle requires low or sometimes no down payment and other upfront tax charges. Monthly payments are also at a lower rate and you get to own the car in a few years.
In conclusion, for lease the pros are lower monthly payments, better warranty protection, driving a new car every two to three years while for sale are ownership, freedom to customize the vehicle, and no end of lease charges.
For the disadvantages of leasing, you should have a stable income, leases have strict mileage limits, and likely to pay more over time.
There are more things you should know about owning a car and by reading this infographic, learn the different factors to consider when selecting a car.