Car Buying Facts: Pros and Cons of Buying a Car Over Leasing

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Vehicle ownership can be considered as a good investment. This is because gaining ownership of a car allows an individual to have a vehicle that he could use in whatever purpose he wants to. In addition to this the vehicle owner could also sell the car whenever he wants to and take advantage of the profit earned from the sale.

However, buying a vehicle involves a significant amount of money and the buyer’s budget would always remain as an issue. Due to this, car finders would usually resort to either car buying or leasing, depending on the budget that they could afford.

These two options are actually helpful but it is still important for new car finders to examine the pros and cons of each of method before deciding on which of these would be appropriate for their financial conditions. In order to help every car finder decide on which of these methods is best for them, this article provide some of the basic car buying facts particularly the pros and cons of the two methods and this includes the following.

Car Buying Pros

  1. One of the most significant advantages of buying a car is total ownership of the vehicle. This simply means that a buyer would automatically obtain the vehicle’s title after he or she has provided the exact amount to pay for the car’s actual price. In the case of buyers who purchased vehicles through auto loans, they would gain full auto abo ownership of the vehicle as soon as the loan is paid off.
  2. Car buying is also a good option for most buyers especially to those who have obtained auto loans to pay for the car’s price. This is because the payments involved are fixed all throughout the term of the loan and the good thing is that the loan holder obtains the ownership of the vehicle once the financial obligation is paid.
  3. Another advantage of buying a car instead of leasing it is the absence of mileage restrictions. Once a buyer has purchased the car he or she could drive this as often as he wants without having to worry about any mileage limitations.

This is condition is also true in the case of buyers who are still paying the loan premiums of the car. Despite the fact that the loan is not yet paid off, the buyer is allowed to drive the vehicle as long as he want without the need to pay for excess mileage.

Car Buying Cons

  1. One of the disadvantages of car buying is the need to pay for the vehicle’s entire value up-front in case the buyer would want to purchase the car on cash basis. Since cars usually costs thousands of dollars, the buyer needs to prepare for the exact amount a few months before the actual buying process is conducted.

In the case of buyers who would be purchasing the vehicle through auto loans, there is also a need for them to look for the existing auto financing deals that they could use and this process is usually time-consuming. In some cases, most of the loans offered require the loan applicant to provide collateral or look for a co-signer with good credit score especially when the applicant has a lower credit score and coping with the requirements involved is quite difficult.

  1. The higher amount of payments involved in buying a car through auto loans is also considered as a disadvantage. Compared to leasing, the monthly payments are relative higher and this is one of the reasons why car finders would usually resort to leasing instead of buying the vehicle.

Car Leasing Pros

  1. Car lease is considered as a good option for those who want to have a car to drive since this is just similar to renting a vehicle. The lease holder is not paying for the vehicle’s price but the payments are paid only for using the vehicle. Given this, the amount of money involved is lower compared to paying the car loan premiums.
  2. Another advantage of leasing the car is that lease holders are allowed to change the vehicle that they are leasing every time the lease term ends. This simply means that leasing a car could allow an individual to change vehicle after a few months as well as the liberty to lease luxurious vehicles that they cannot afford to buy.
  3. Car leasing also saves the lease holder the trouble of attending to the car’s maintenance needs since the lease provider or the original owner of the vehicle would be the one who will do the maintenance of the vehicle. Due to this, the lease holder could save extra amount of money.

Car Leasing Cons

  1. A Car lease does not allow a lease holder to own the vehicle subjected to lease and this could be considered less advantageous in the long-term since the lease holder won’t get anything when the lease term ends. The vehicle should be returned to its original owner as soon as the lease term ends and this leaves the lease holder without a vehicle in case the owner refuses to offer a new lease contract.
  2. Aside from not getting the full ownership of the vehicle, car leasing also involves mileage restrictions. The mileage restriction reduces the lease holder’s use of the vehicle since exceeding the mileage limit involves penalties. Due to auto abo schweiz this, a lease holder needs to refrain from using the vehicle as long as he wants to avoid penalties.

Given these car buying facts, every car finder would probably have a clear idea on the pros and cons of buying and leasing a vehicle. Through these facts, they could easily select which of the two would best suit their budgets.