Buying vs. Leasing

 

It can be a tough to choose between buying and leasing, as both come with their advantages and drawbacks. Here, we'll draw out the major pros and cons.

Buying

Pros:

·         Pride of ownership, which is unquantifiable

·         Cheaper if you drive it until the wheels come off, or if you buy used and resell

·         You can drive it as far as you want and modify it as much as you please

Cons:

·         Down payment and monthly payments are higher

·         Repair costs may begin to pile up once the warranty expires

·         You'll have to worry about depreciation

Leasing

Pros:

·         Down payment and monthly payments are considerably lower because you only pay for the value the car loses over the lease period

·         Lower repair and maintenance costs, as the factory warranty will in most cases last during the entire lease period

·         If you string leases, you get to drive a new car every time

Cons:

·         If you string leases, it becomes more expensive than buying in the long-term

·         You can't modify the car and there are mileage limits

·         You'll be required to purchase premium insurance

·         Terminating a lease contract early may be more expensive than simply carrying it out