Advantages of Buying vs. Leasing a Car

For many car owners, the decision to buy or lease a car is a confusing one. There are some benefits to leasing. For many car owners leasing a car allows them to take less money out of there pocket, but leasing a car doesn't mean it is always cheaper. Some car owners may actually find that leasing a car is sometimes more expensive.

Other car owners may find that they want to lease a car because they want to size up, or get a new car every few years, or couple of years.

But if getting or leasing a new car every couple of years is not for you, then leasing a car may not be the best deal for you. For some car owners, leasing a car may mean getting less. Buying a car may be a much better deal if you plan to pay off your auto loan. This is because after you do pay off your auto, once you have it in your garage and keep it, you start saving money.

Once you lease, most of the time you are stuck leasing, indefinitely. There is no way to stop leasing, and you never get to say, “It’s paid in full.”

Paying Forever on a Lease

If you pay for a lease, you will make car payments indefinitely. Car owners that pay off a car on the other hand, have an auto to show for it. And when properly cared for, a high quality car may last a lifetime. A car that is $190 per month may only seem like a good deal until you realize that you may be paying that amount of money in perpetuity.

Most lease owners have to pay for depreciation, and cars do depreciate over time. So keep these ideas in mind the next time you decide to lease rather than buy.