The Benefits of Leasing a
Vehicle
If you are not ready to decide on a
model to own just yet, prefer lower monthly payments, and can stick to a set
mileage count and other terms of agreement, then leasing a vehicle is a great
option for you.
- Initial costs for an auto
lease tend to be more affordable. This is because lessees are often expected to
pay a small down payment up front or exempt from it completely.
- With this option, your monthly
payments will also be lower thanks to factory-backed incentives that keep
annual percentage rates low. Not to mention, there are additional cash back
offers in many cases.
- Bundled with the incentives are often
bargains for automotive services as well. In this way, a lease can save you
money for oil changes and other maintenance needs at the auto shop.
- Unlike a purchase, you are not
obligated to keep your model for longer than the contracted time limit.
Typically, that means you will retain driving rights for the interim period of
three years. Once the contract concludes,
you can return your leased vehicle in exchange for a newer one or opt to pay
the remaining cost to claim it as your own.
The Benefits of Buying a
Vehicle
If you know the exact model you desire
to keep, appreciate the flexibility of making customizations, and intend to
travel great distances, then buying a vehicle is likely the better option for
you.
- Though payments for an auto
purchase tend to be higher, the end result is that you alone own the vehicle
once its entire cost is paid off.
- Through auto loan payments, you can
successfully build your credit score. Not to mention, by working toward
ownership, you will have tangible equity and thus save more money in the long
run.
- As you are the sole owner, you have
the liberty to modify your car, truck, or SUV to your liking with new parts or
extra accessories. Unlike a lease, you will not be penalized for making such
changes.
- Similarly, you will have the freedom
to drive as much as you please for there are no mileage restrictions for you to
uphold. If you should tire of your model, you can sell it at any time too for
the purchase of another vehicle or to make a different investment.
AdChoices