When you stroll onto a dealership lot, car salesmen do everything they can to gain your interest in making a decision about what car you want and how you want to obtain it. That in itself isn’t a decision to be taken lightly; after all, you’re going to be driving the vehicle for at least the next few years. But, what’s more important is whether you decide to purchase the car or lease the car. Both options have their benefits and downfalls but which one is really right for you, your family, and your current financial situation?
To put things simply, purchasing a car means that it’s yours to do what you wish – as long as you keep up on your loan payments, of course. If you want to install a custom sound system, make mechanical upgrades, or even repaint it, you’re free to do so. But, you’ll also be burdened with making a sometimes hefty down payment, paying for repair costs that occur later in the life of the vehicle once the warranty coverage has expired, and you have to consider how much value the car will lose between the time you purchase it and the time you decide to sell it and trade it in for a new vehicle. When you lease, you don’t have to worry about the aforementioned burdens, as they typically have smaller down payments, and carry a full warranty through the entirety of the lease. But, on the other hand, you’re responsible for any excess wear and tear, mileage that exceeds your predetermined allotment, and have zero equity in the vehicle. Those who choose to lease a vehicle typically pay less in sales tax, but usually need a higher credit score and often end up paying more for insurance while the car is in their possession.
That’s just the tip of a very large iceberg, though, as there are a lot of different things that you need to be aware of if you want to make an informed decision. Your credit score will even play a factor in which options are available to you and what the end cost of purchasing or leasing a car will be. So, we’ve put a guide together that covers the pros and cons of purchasing and leasing, as well as information that will help you decide which option is best for you before you even head over to your local car dealer.
from Top Speed http://ift.tt/2oDwYLr
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