Car Lease vs Car Loan

For those looking for a new automobile it can be difficult to decide whether to go for a car lease or car loan. The clever marketing tactics of car dealerships can make things seem very simple, however a deeper understanding of terms is necessary in moving forward and making this important decision. After all, a car is a big commitment to make and being sure that the monthly payments and terms of purchase or lease are agreeable before moving forward is an essential step to take. So how does one decide between a car lease and a car loan? The decision requires defining the differences between these two methods of possession

To lease or to own, that is the question...

Advantages of leasing a vehicle. Leasing a vehicle is a common option for those looking for flexibility and affordability while not having to worry about ongoing maintenance issues.  Lessee’s should be aware that there may be fees associated with excessive mileage and excessive wear and tear and that ending a lease early will result in hefty penalties. Also to be considered is signing up for a lease term in which the vehicle is still under warranty for, eliminating the possibility of unforeseen maintenance costs and making providing peace of mind.

Advantages of owning a vehicle. There are many advantages to owning your vehicle as well and this is the more popular option in comparison to leasing. Having control over the amount of miles you choose to drive, the condition you keep your vehicle and knowing that the clock won’t run out on your vehicle until you are ready provides vehicle owners with the control that they desire. Of note to owners is the loss in value upon driving off the car lot, however, knowing that you can subsequently sell the car in the future to recuperate some of your investment is a plus in buying.  Another reason that ownership is so popular is because many buyers may enjoy special financing offers upon purchase that provide bonuses or very low payment for a particular period of time. These special offers many times will provide a lower cost of ownership temporarily than leasing.

Determining what fits your needs. Which ever option you choose to use when attaining your next vehicle, it is important to decide what the most important needs you are trying to satisfy are in making this decision. If you are a control freak and don’t like being bound to a list of rules that govern your use of the vehicle, leasing may not be what you are after. If you want to never worry about maintenance issues and be assured that you aren’t stuck trying to sell your vehicle at a loss to uncompromising buyers in the future, Ownership is likely not your cup of tea.  Learning which option suits your particular needs is vital in determining how you care to take possession of your next vehicle and in learning these facts, it is possible to make the informed decision next time you are out car shopping.

Learn more about Leases vs Loans

We hope this article helped you learn more about the car lease versus car loans