Buying or Leasing? Which Financial Option is Right for You?

Owning a car is something that can bring about an entirely new independence in your life. It’s a life experience that most people become increasingly excited to approach. Different personal circumstances play a major role in deciding what kind of vehicle you will find suitable.

When you decide that you want a vehicle of your own, one of the questions you’ll likely ask yourself is whether a lease is right for you, or if you’d be better off buying. If you’re just starting your vehicle search, this choice may seem overwhelming, and contradictory information may be really confusing when it comes to deciding between a lease and a purchase. The bottom line is that each option offers benefits that may work better for you depending on your situation. Let’s look at the difference between the two options.

Leasing a Vehicle:

Leasing a car is a great option for some individuals. Leasing tends to work really well for business owners, as there are often tax benefits to watch out for. When you lease, you secure a vehicle for a certain, finite amount of time. You’re responsible for a monthly payment during this time, and you’ll pay for any damage you cause to the vehicle while it’s under your care. It’s easy for many people to qualify for a lease because they generally don’t require you to put any form of down payment. They’re also not going to cost you a large sum of money in taxes. Unfortunately, like renting a home, leasing a vehicle doesn’t get you any closer to owning a vehicle; at the end of your term you will be able to finance the vehicle and start working towards owning it, or you can terminate your agreement and do something different, including taking on a new lease.

Buying a Vehicle:

Whether you finance a vehicle or you buy one outright, the most attractive benefit is the idea that you will actually own your own vehicle. There is something particularly nice about having the freedom to sell your vehicle whenever you want, especially if your situation changes. Keep in mind that when you buy a vehicle, you can also customize it and avoid charges for cosmetic damages, such as if your child spills a drink.

Remember when you’re financing a vehicle that you’ll have other monthly financial concerns to think about, like buying fuel and tune-ups, as well as relevant insurance coverage; something that every responsible driver knows is truly important. Rates differ between leasing and buying, so be sure to do some research on the topic before making your final decision.

About: This guest post is from Allison with where you can find more information about getting car insurance whether you decide to buy or lease your next vehicle.