Age Old Debate of Whether to Buy or Lease

To buy, or to lease, that is the question. People have long debated on both sides whether they should buy or lease a car. Personally, I can the pros and cons to doing either one, it really depends on the person, their automobile needs, and their financial means. I will say that there is no hard and fast rules for which one is “better”, only that there is usually a better choice for each specific persons needs and wants.

My grandfather, father, and even most of my friends would tell you that buying a car is hands down the best financial option of the two. There is a small camp that would detract from buying or leasing, and they would recommend public transportation, but that simply isn’t a viable option in the area I live. When you buy a car you build equity, as opposed to leasing where you are essentially renting the car for a specified period of time. If you have a long commute to work then this is typically a better option since you are limited when it comes to mileage. It’s also nice to own the car, which allows you to modify and do with as you please. Well this has long been touted as the better of the two when it comes to financial responsibility, it’s important to remember that you need to hold on to the car longer than three years for that financial benefit to really pay off. There are times when you need to hold on to it considerably longer than that even.

Believe it or not, leasing has it’s positive aspects as well. Some people are inherently low mileage drivers, and have no problems staying within their limited allowed miles. Also, they desire a nicer car and for less money. Yes you don’t own the car, but you could be renting a pretty darn nice one for a fraction of the cost of owning it. To me one of the most significant factors of leasing a car comes from not having to pay for expensive repairs. If you blow out a tire on a pothole then you are responsible, but the wear and tear on breaks, engine, exhaust, are typically covered under the bumper to bumper warranty. Also, keep in mind that even when leasing a car you are required to have extensive full coverage on the vehicles, as the dealers don’t want to be stuck paying off a car that gets totaled while in your possession.

As you can see there is no set rule on whether to buy or to lease a vehicle, it really depends on the needs and wants of every consumer.





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