The Pros and Cons of Leasing vs. Owning a Car
Updated: Apr 28, 2021
When you’re in the market for a new vehicle, you’re faced with a big decision: should you lease or buy? If the answer was cut-and-dry there probably wouldn’t be the option to lease. Which begs the question, should you lease your car vs. own it?
Here are the pros and cons of leasing vs. owning a car to help you decide:
Leasing a Car
If you lease, you are essentially renting it. You make payments on the vehicle over a period of time and return the car at the end of your lease.
Monthly payments are typically lower than payments you’d make on an auto loan.
It allows you to drive a new car with modern features and capabilities every 2-3 years.
You don’t have to go through the hassle of trading or selling your vehicle when you want something new.
The number of miles you can drive for the duration of your vehicle lease is predetermined and there are penalties for driving over the set mileage limit.
To qualify for a lease, you must have a predictable and stable source of income.
It is required that you care for and maintain your vehicle properly on a consistent basis.
Since you don’t get any of the money you paid towards the vehicle back when your lease is up, you usually end up paying more for a lease with less of a return than you do when buying a vehicle.
Buying a Car
Buying a vehicle means one of two things: You pay the total selling price for the car up front and are given sole possession of the vehicle’s title OR you finance the vehicle, establishing ownership but allowing the bank to be in possession of the vehicle’s title until your auto loan has been paid off.
You are the owner of your vehicle.
You can drive however many miles you desire.
When you want a new vehicle, you can sell it and keep the money you make from the sale.
You can modify and customize your vehicle any way you’d like.
Auto loans typically have higher monthly payments than do leases.
You are responsible for selling or trading your car when you are ready for something new.
You will have to pay financing fees and interest on your loan.
Buyers also get the luxury of taking their cars wherever they wish to be maintained and repaired. Those who lease are required to have their vehicles serviced by the dealer, which typically costs quite a bit more than taking your car to your neighborhood repair shop.
The expert technicians at Hillmuth Auto Care are well-equipped to handle all of your vehicle repair and maintenance needs. Contact or visit our Maryland vehicle service center today to schedule an appointment!