When you're in the market for a new car, your first instinct may be to buy it. However, you shouldn't discount leasing right away. In fact, you can get a vehicle of a much higher value when you lease without needing to have all of the money for it.
Which way you go will depend on a variety of factors including your budget and car preferences. Hopefully the following information will make coming to a decision a bit easier for you.
Car Leasing: Pros
For starters, you won't have to pay as much each month to lease a car as you would to buy it. Plus, you don't have to pay as much upfront for the down payment. This makes it easier to get behind the wheel of a car faster.
Additionally, you can more readily get your hands on a high-value car when you lease. And you can swap it out for a brand new car every couple of years. Typically, you'll have a much better idea of how much the car's trade in value is at the end of the lease than you would if you were to sell a car after owning it. Finally, you won't be responsible for paying for very many repairs since new cars are under warranty.
Car Leasing: Cons
Of course, leasing a car does have its drawbacks. For instance, you don't own the car and have to deal with a limited amount of mileage per year unless you want to pay more at the end of the lease. Actually, you'll pay more overall to lease a car because you're always making payments. The payments never end. Ending a lease early is also costly. Basically, you have to deal with fees when you lease that you wouldn't have to deal with you buy a car.
Car Buying: Pros
Buying a car is great for your credit. Plus, there's an end in sight. Even though you may pay more per month to buy a car, you have the joy of walking away with it in the end. That car is yours and yours alone. Plus, if you take care of it, the car should last for quite a long time and allow you to go for several years without having to make car payments.
Car Buying: Cons
One of the biggest drawbacks of buying a car is having to save up a large sum of money at the outset to make a down payment. Plus, you'll need to shell out higher payments each month than you would if you leased. Unfortunately, once the warranty expires on your car, you're responsible for all maintenance fees and if you want to trade-in your car, you may find that the vehicle has dramatically depreciated in value, leaving you with few trade-in benefits.
This is just an overview of car buying and leasing pros and cons. Hopefully, this helps you decide on the route that's best for you.