Leasing Or Buying - Factors That Determine Your Decision

The possible options, leasing vs buying a car which you have if you want to get a new vehicle. Though with both of these options you pay for the vehicle with monthly payments, the two alternatives differ from each other a lot. Because of this, it is often difficult to make the decision which option is the right one for you.

Since both alternatives have advantages and disadvantages, people often find themselves in a confusing situation when they have to select one of the options. There are several important factors, which will most clearly indicate which option is better for you.

One of the most important factors for deciding between leasing and buying a vehicle is how long you intend to keep the vehicle. This is important because when you buy a car on loan, it remains yours after you finish the payments for it, and when you lease it, you have to return it when the lease is over.

So if you intend to drive your new car for many years, your decision should be to buy it on loan. If you prefer to get a newer and better model after a few years, then it is best to lease the vehicle. Note that when you purchase a vehicle you will not be able to sell it for a good price when you have used it for a few years, therefore if you like to change your vehicles often; car leasing is your best bet.

Another important factor is the car maintenance cost. If you lease a new vehicle, the warranty of the manufacturer will most likely be longer than the leasing period. Therefore, the maintenance costs, which you will have with a lease, are a lot lower than those, which you will have with a car loan.

However, you should still note, that when you own a car, you do own a certain asset with certain value, which you can sell or trade for something. So the maintenance cost of a car you own can be higher, but still there are advantages when you are the owner. You can make improvements on the car and increase its value so that you can sell it for more money.

There are many important factors, which will determine your choice between leasing, and buying, however the most important one is whether you prefer the security of having a car, which is entirely yours, or you prefer to lease a car and change it every few years.