Buying or Leasing a Car: 4 Questions to Ask Yourself
Having a car is more of a necessity than a luxury, especially if you are just starting to your career. It is also one of the major decisions you have to make at one point in your life. A consideration to make is choosing between leasing and buying one.
To give you an idea, here are some questions to answer to make the right choice:
How long are you planning to keep the car?
If you are the kind of person who does not mind driving the same car for years and want to have a ride that you own, buying one might be the apt choice for you. If you take out a car loan able to make regular payments, the vehicle will be yours once loan payments are done, On the other hand, if you prefer driving different cars every three years, leasing one is probably a better choice. When you get a new lease, you will be driving the latest car model.
How often will you be driving and what distance?
Mileage you accumulate will have an effect on a leased vehicle since the leasing company sets a limit on the mileage you can put on a car. If you exceed the limit, you might have to pay extra. Conversely, the distance you drive on a privately owned car will not have a bearing except for wear and tear, which is but normal.
Will you be using the vehicle for business?
Business owners can have tax credits for vehicles used for businesses from leased car depreciation as well as financing expenses while you cannot get the same from the loan payments you make on a car that you own.
Are you one who wants to customize your ride?
If you love to make alterations to your ride like wider tires and rims, racing cams and hydraulics, leasing will not work for you since this is not allowed in your leasing contract. But if you own your car, you can customize as long as you want.
These are just some of the considerations you have to make, on top of your financial capacity. By answering these questions, it will be easier to choose which is better of the two options.