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Car Leasing vs. Buying

Car Leasing vs BuyingEveryday countless numbers of vehicles are purchased. The auto industry is a very lucrative business. All makes and models are available. Individuals can purchase small compact cars, or large family vehicles.

Inevitably the question will arise is it better to go for a new car leasing or is it better to buy a car? This is not as simple as it seems. Many factors come into play the moment an individual makes a decision to invest in a car. They have to ask some very important questions.

What is it they want in a car? Is owner ship the most important factor? Do they want to have a new vehicle every three years? Is the latest technology or the best safety equipment more important? Buying or leasing a car is a very personal decision.

However, a couple of things to consider may help when it comes time to decide. What is the difference between a purchase and a lease option? Each option has its advantages, and its disadvantages.

The first option is the outright purchase. The monthly payments are usually higher, taxes on the vehicle are either paid in cash, or they become a part of the loan based on the person’s credit score.

When a person leases a car, they only have to pay on the part of the car that they will wear out. They may or may not make a down payment, the taxes they pay are only on the monthly payment, and unlike a purchase, a payment is made a month in advance and not a month later. Nissan car leasing is a good option to go as they manufacture good economical cars especially for big city residents.

Both make payment on a monthly basis, but on the lease option the lessee has the choice of turning in the current vehicle for a more updated one, or buying the current vehicle at the resale value. In the end, they both have something to offer the investor. It all boils down to what the person wants.

Image Credit: Flickr.com

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Published on: April 26, 2013

Filled Under: Auto Tips and Guides, Autos Articles

Views: 1423

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