When to Buy or Lease a Car

Many drivers struggle with the choice between buying and leasing a car. Both options have their pros and cons, but the final decision all depends on the driver’s lifestyle, how much money they can afford to pay over the long-term, and how long they plan on using the car. When buying a car, the customer can either pay for the entire car upfront or apply for a car loan from a local lending institution. When leasing a car, the customer can simply rent the car out for months or years at a time.

Leasing a Car

Leasing a car is a great option for those that aren’t sure how long they’re going to need a car. They may not want to bother themselves with the huge responsibility of taking on a car loan when they only need the car for a short period of time. Additionally, those that aren’t interested in taking on more debt will also find the financial structure of leasing a car more appealing.

Usually leasing a car means paying a monthly sum that’s around $150 a month or more. Every car leasing company offers different rates based on their location, including the demand for leasing cars, the number of traffic incidents and the type of driving environment. Those that want to lease a car can go to the leasing firm for everything they need on the road, including insurance, roadside assistance, and other additional safety precautions. This is a much easier process than buying a car and having to sign up for auto insurance.

Buying a Car

Buying a car is a completely different experience than that of leasing. The driver will outright own the car and can keep it for as long as he or she sees fit, but they will also be tasked with having to pay for the car over the long-term. Used cars can go for as low as $5,000, while new cars can cost as much as $30,000. The driver may have to take on a great deal of debt, depending on how expensive the car is. Every auto dealership will offer several different financing plans that the customer can use to pay off the car. This usually includes taking out a loan with interest for anywhere from 12 to 60 months.

Buying VS. Leasing

While leasing a car is less involved and can cost less per month, the driver will not outright own the car. Those looking to buy a car can obtain some wealth by putting the vehicle in their name. Those interested in learning more about buying and leasing cars should contact their local dealer.

Drivers in the Los Angeles area looking for a fast, reliable ride, can lease the new Honda Civic at some of the city’s licensed dealers.

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