Is your car starting to feel old and worn out? Has the time once again arrived for you to start considering replacing your vehicle? Having a good, reliable set of wheels to get you around is very important for peace of mind, but knowing the best option for obtaining the right vehicle can be difficult. In recent years the idea of leasing a car has taken off, but it isn't for everyone. For many, purchasing a car is still the right choice. How you want your car to look, the type of gadgets that you find essential, and how much you're willing to spend are all important factors that could affect your decision on whether you choose leasing or buying. Here are the pros and cons of both:
Leasing
Pros: Financially the pros of leasing a car are short term. Leasing comes with a lower down payment and often times lower monthly payments, so if you need money to spend on other things on a monthly basis this might work best for you. There's also much less to worry about in regards to the car breaking down, as you can get a more modern vehicle every few years and many leases offer warranty packages in case of any issues. Another little perk is the ability you would have to change your car frequently with very little work on your part.
Cons: If you do a lot of miles in a year leasing probably isn't for you. Most leases come with a mileage allowance, and for every mile you go over you'll have to pay. Additionally, if you often find yourself having little accidents that result in little scratches, or you have small children who make it difficult to keep a car in pristine condition, then leasing can end up being very costly due to wear-and-tear fees. One of the biggest cons to leasing is that, even after putting all that money into monthly payments, the car won't be yours.
Buying
Pros: Overall, buying a car does work out to be cheaper than leasing and insurance costs are generally lower. The biggest benefit to buying is that at the end of your loan you actually have an asset that's all yours. Owning the car means when you want a new car you can sell the car to help alleviate the costs. You also don't have to worry about how many miles you drive, and you can make any modifications that you want.
Cons: Maintenance costs for a vehicle always increase as the car gets older. Because of this the longer you own the car, the higher the chance you'll have to spend quite a bit on repairs to keep it running. In addition to possibly costing you a lot of money, your car will also greatly depreciate in value from the time you initially purchased it. This means that when it comes time to sell you won't get much back from what you paid, but you'll still get more than if you'd leased.