To Lease Or Buy: Is That The Question?
There comes a time in every young person’s life when the need for motorized transportation just becomes impossible to live without. It’s at that moment that you need to make your way to the local automobile dealership and pick out your chariot, but there a serious consideration looming overhead: do you lease or buy? The question is ultimately subjective in nature and has a lot to do with finances, credit and personal taste.
Before any decision is made, a prospective automobile owner must understand the differences between owning and buying a car. When one leases a car, the dealership takes half the agreed upon price of the car, subtracts whatever you pay upfront as a down payment and then divides the remaining balance over three years of monthly payments. Just like buying a car, your credit has an impact on how expensive of a car you can lease and what your monthly payments will be, but unlike buying a car, you generally return the car and then lease a new one. The upside is that you don’t have to worry about resale value or long-term maintenance and the payments are generally lower than buying an auto. There’s also the joy of driving a different vehicle every three years, which is a big draw for those lucky few that can afford to be bored with their cars.
The downside of car leasing available at Lease Cars Direct is that you aren’t accruing any equity and an actual loan is better for your credit than leasing. One of the hidden pitfalls of leases is that lease contracts tend to be littered with hidden fees and make the appealing lower monthly payments a kind of deal-with-the-devil as the fees are collected after the three-year term. Some leases require a per-mile fee if you drive over the pre-set distance limit and many consumers find that out much too late.
In essence, leasing is for those looking to spend less money in the short-term and buying is for those looking to bolster their credit and make a long-term investment. Of course, along with those considerations come concerns about brand reliability and cost of ownership as making a long-term investment into a notoriously troublesome vehicle can spell doom for one’s pocketbook and nerves. There is no good substitute for the doing proper research. Buying a car is a major purchase and it is a decision that should not be taken lightly and cannot be conducted impulsively.