Financial implications are a vital part of both buying and leasing a vehicle. However, there are some other factors, too, that you need to consider before making your final pick. What’s best? Financing vs. leasing a vehicle is a question that can have different answers for different people. The following are some pros and cons related to the practices that can help people make an informed decision.
Pros and cons of leasing a vehicle
- The chance to drive a new vehicle more often
When people lease a vehicle for a few years at one time, then they have a choice to pick a newer model each time they renew their lease.
- Lower repair costs
If the vehicle has a manufacturer warranty, then the leasing party has to bear the minimum and only the basic costs of repairing it.
- Do not have to sell the vehicle
When the lease ends, all you need to do is hand over the keys to the dealer and get a new one with a new lease. You can skip the lengthy process of selling the car.
- Lower monthly installments
The cost of leasing is usually lower than buying a vehicle, and that works well in most cases. Almost no down payment is needed while leasing a vehicle.
- Stable income required
With some pros, there are some cons too, that you need to take a look at for finalizing, what’s best? Financing vs. leasing a vehicle. For payment of monthly lease installments, you need a steady and stable source of income, always.
- Limit on mileage allowance
There is a set limit that a private driver gets when he leases a vehicle, which is not the case when one owns a vehicle.
All these factors play an important role in deciding what’s best? Financing vs. leasing a vehicle, and now let’s move on to the benefits and drawbacks of financing a vehicle.
Pros and cons of financing a vehicle
- Customizable appearance
When you buy a vehicle, you can accessorize or paint it the way you want, which is not an option with leasing one.
- Selling is always an option
Flexibility to put the vehicle for sale is possible only when you own it.
- No upper limit on mileage
You can drive the vehicle as many miles you want to if you decide to purchase it.
- Higher monthly installments
Since the owner needs to fulfill the vehicle’s entire cost, the amount of installments is generally higher than leasing.
- Repair costs
All vehicle maintenance costs have to be borne by the owner once the vehicle has reached its post-warranty stage.
The final call for what’s best? Financing vs. leasing a vehicle depends on the financial conditions of a person and his ability to pay in the long term.