Pros and Cons of Leasing Vs Buying a Vehicle
Most individuals who are in need of cars that they could either use for personal or business undertakings usually gets confused as to whether getting a car lease or buying a bedliner through financing would be the best option. Due to lack of proper understanding, most of them would either lease or purchase a vehicle and eventually end up regretting the decisions that they have made. Some of them end up leasing a car when they should have bought one while the others were able to purchase a vehicle when they should have leased it. In order to help these individuals to determine if getting a vehicle lease would be the best option for them or not, this hub enumerates some of the pros and cons of leasing over buying a vehicle through financing.
Car Leasing Pros
1. The payments involved are lower
The payments involved in leasing a car is relatively lower compared to most car loan premiums. Aside from that, if an individual who decides to lease a vehicle, he or she is not usually required to provide a sizable amount of down payment up front. Most loans that are used to purchase a vehicle on the other hand requires a buyer to provide the appropriate down payment and this serves as one of the most significant reasons a lot of buyers fail to obtain the car that they want to purchase through loans.
When an individual secures a car lease, he or she is only required to pay the monthly premiums as payment for the vehicle’s depreciation cost. This simply means that the car lease holder is just paying the premiums as the payment for using the car until the entire lease period is completed. This could be considered cheaper compared to vehicle financing since the total payment provided all throughout the entire lease period is almost equal to 50% of the actual value of the vehicle while financing requires the loan holder to pay the entire cost of the car that was financed.
2. Car lease allows vehicle replacement
Another advantage of getting a car lease over buying a vehicle through financing is the option to return the leased car subjected to the leasing company when the lease term ends. At this point in time, the lease holder is given the option to obtain a new deal and lease a new vehicle as a replacement for the one that was already turned over. Given these set up, a lease holder is given the chance to drive a new vehicle right after the previous lease contact ends and a new one was signed.
This setup is also beneficial on the part of the lease holder since he or she is saved from suffering the burden of handling the vehicle’s depreciation costs and at the same time the hassle of looking for a buyer that would purchase the old vehicle before buying a new one such as in the case of those who have purchased a car through a vehicle loan. On top of these, the lease holder will still be paying lower monthly premiums while driving a new vehicle.
Car Leasing Cons
1. Higher vehicle maintenance expenses
Although leasing a vehicle provides a number of benefits, this setup also involves some disadvantage. One of these is incurring higher vehicle maintenance expenses. Almost every car leasing companies requires their lease holders to a strict maintenance schedule for the vehicle that they are leasing. The scheduled maintenance adheres to the set of procedures prescribed by the car manufacturers and this involves relatively higher expenses. Failure to strictly follow the scheduled maintenance schedules set by the leasing contract would require the lease holder to pay some penalties by the time that he or she returns the car when the lease ends.
Considering this aspect, buying a car through financing is better since the owner has the power to decide on the maintenance schedule of the vehicle that he or she is financing. As soon as the car works well, the owner could postpone or refuse to subject the vehicle to a scheduled maintenance. Thus, the owner is spared from the burden of handling the expenses involved in the maintenance.