Usually, people get confused when they encounter the selection between buying a car or leasing one. This is a tough call that everyone has to make every once in a while. Largely, whether you are going to buy a car or lease it, comes down to your priorities. A lot of factors come into play whenever this decision is being made, emotional attachment to the car to be one as it will prompt the customer to buy it. However, before making any final decision look at the distinctions, between the two poles, we have compiled below to help you make an informed one.
- Where leasing gives you the benefit of driving the car during its prime years with the option of replacing it before it starts to show signs of wear and tear, you will also end up paying more as you are paying for its prime years when it loses value the most rapidly.
- Buying satisfies the human desire for ownership while in leasing you never own the vehicle, you just use it during the time of your contract and have to return it at the end of the term. Unless you buy it, which has its more cons than pros.
- Where buying expects you to pay down payment, taxes, and registration fees as up-front charges, leasing involves paying security of the vehicle which is usually refundable, 1st month’s payment, acquisition fee, registration fee, taxes et cetera.
- Most people choose leasing over buying because of the relatively lower monthly payments of the lease. This is natural as a lease includes only the car’s depreciation value plus some interest while buying comes with a full purchase of the car plus interest.
- Changing a leased vehicle is pretty easy as you simply return it by paying some charges and get a new one under a new lease. On the other hand, you have to sell the vehicle or trade it as per its current market value to go for a new one.
- When you buy a car, you are free to sell it at any time whereas leasing doesn’t allow you this luxury. Terminating the lease agreement before its completion is usually very costly for the consumer.
- When you buy a vehicle, its value depreciates to your detriment. Whereas, the value of the vehicle doesn’t affect the leaseholder financially.
- A leasing agreement involves a mileage clause that allows you to drive your car up to a fixed mileage per year any increase will result in additional charges. Contrastively, there is no such limit when you buy a car, you can drive it as much as you want.
- Leased vehicles are discouraged to be customized as you don’t own them essentially. They must be returned at the end of the term and in stock condition. While, when you own the vehicle you can do as you like.
After carefully going through each point and cross-checking it with your priorities, you can make a good decision. Moreover, you can find many options on auto lease NY so do some research while selecting the leasing company, VIP lease is a good place to start.