If you have decided to own a new car and selected the model, color and other accessories for it then there are two options for owning it. You can either buy it outright or lease it. Though you have to pay for it in both the options but still there is great difference between them. Brief information about difference in them and their individual benefits is provided here under to help you in making appropriate decision for owning the car.
Difference between leasing and buying a car
While leasing a car you need not take a loan or make hefty down payment while owning it. A small down payment amount can allow you to take the car to your home while leasing it. You only have to make monthly payment till the time of lease and will have to give the car back after the end of lease period.
While buying car you will have to pay either the full price of the car or a handsome down payment if you are getting it financed through some financer. Though in case of financing the car you will have to make monthly payment to the financer like the leased car but the bought car will remain with you unlike leased one after repaying the financed amount to the financer.
Here’s a good place for Cheap car leasing
Benefits of leasing a car
- Leasing can be a good option to own a car if you do not run it considerably more than the predetermined millage limit. You will have to pay additionally if you often take it on long trips.
- Car leasing can be the best ownership option for you if you want to change your car after every two-three years. Instead of waiting for paying off the car loan installments you can own a new car by leasing it after few years without accumulating a fleet of cars at your home.
- Car leasing also allows you to own the cars which are not affordable for you to buy. You can easily enjoy the ownership of a luxury car by paying small down payment than buying it through financier.
- Car leasing can also save the cost of its maintenance as some leases include it.
Where to lease Kia Sportage
Benefits of buying a car
You need not pay a monthly installment if you have bought the car by making full payment in advance.
- While buying a car you will have to pay much less than you pay for a leased car even if the maintenance of the bought car is borne from your pocket.
- You need not pay additional money for driving the car more than the stipulated limit.
- You can sell or trade your purchased car after repaying its loan as you own its equity.
- Insurance companies charge at more stable rate for the purchased cars than leased ones. Though you can own luxury leased car but you will have to pay higher insurance rates for it.
Thus after comparing the benefits of buying and leasing a car you can easily decide whether car leasing is the better way to car ownership or buying.
Here’s some global car industry news.