We are regularly faced with this query, on what the better option is leasing or buying a car. Some haunting questions that have both pros and cons making it even more difficult to choose.
The cost of the car is definitely more when is calculated with an estimate deprecation of 24 months as against the rental cost of the car for a period of 24 months, especially if it’s a new car that you’re looking at. Let’s look at benefits for both the options that will help us get to a right deduction.
Buying a car benefits: One non argumentative benefit of buying a car is that in the short term you will be the owner of the car. With this implication it will be alright to say that one day your loan period will eventually come to an end and you will be off the car loan list. You obviously are no longer questionably by anyone, especially when one day you want to sell your car. The other advantage is that the insurance limits are much lower than that if you would lease. By being the owner of the car you can keep increasing the mileage without any fear of economic penalties.
Benefits of Leasing: One biggest benefit of a leased car is that you don’t have to spend too much when you’re getting the car and when you need to maintain it. There can be no down payment and if there is it is minimal, also there are no payments needed to be made for sales tax. Along with owing a new car possibly every year, your monthly installments will also be lower. Since you will be paying the depreciation cost of the vehicle, the payments are not heavy.
It is upto you now to decide which one to go for once you fully understand what your requirements are.
