When purchasing a new car there are many decisions to be made. What type, the color, what sort of extra options want. But there is one more; to buy or lease.
While there are some drawbacks to buying, for many customers, the pros outweigh the cons. Actually, there are many great reasons to purcahse a car instead of leasing. The greatest benefit of buying instead of leasing is that one day you will own the car. This means you will be free of car payments.
When you lease a vehicle, you have to maintain it according to certain specifications set by the manufacturer, mileage, exterior and interior condition, and mechanical maintenance. If you buy the vehicle, you are not responsible for certain standards. While it is a good idea to maintain your vehicle, you are not bound by a contract to do so.
Also, the limits on your car insurance policy are typically lower than if you lease. Once the car is paid for, you can carry liability and save yourself tons of money.
The value of a car depreciates the greatest in the first year. After that, the depreciation of the car slows as the car ages. If you lease a car every few years, you are paying for the high rate of depreciation. If you purchase a car, the longer you own the car, the lower the annual depreciation cost.