Car Leasing vs. Car Buying

Buying a car or even thinking about buying a car is stressful. There are many things that we don't know about, or what to ask the dealers, so it's important to be knowledgeable in what you want, and what know about your transaction. First of all, many don't even know whether or not they should lease their vehicle or purchase it. It ultimately comes down to what your personal preference is, and how long you plan on keeping the vehicle.

It's recommended that business owners lease vehicles, you can write the payments off on your taxes. Some of the pros to leasing a vehicle are that one you are only paying for using the car, so you could typically lease a nicer vehicle than you'd be able to purchase, if you were on a budget. Your vehicle is also under warranty for the entirety of your lease, this can save you money just in repairs, and it is also good to know that if anything is wrong with the car, you are going to get the best care for it.

A disadvantage to leasing a vehicle is that you have to keep your car in excellent condition; you will be responsible for anything that happens to the car. The largest disadvantage is that your miles are tracked; most lease agreements only allow you a certain amount of mileage, and once you surpass that amount, you will be charged per mile and the amount is usually pretty steep.

The advantages of purchasing the car are that you own it, it's yours, no one can take that away from you, and you can have it forever if you choose. The monthly payments are usually higher when you purchase a car, granted you took out an auto loan. It basically comes down to how long you plan on using the car, and how often you drive.

It's totally based on personal preference, so carefully think it out, and decide what's best for you. Both are great options, and there are pros and cons to each decision.

Contributing National Payday Staff Writer

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