Hook: Aside from leasing, it is known another option to acquire a car is through buying. Either way, both of these options have there pros and cons. To give you enlightenment, this article aims to talk about the advantages and disadvantages of purchasing a vehicle.
Owning a car holds excellent advantages, like avoiding the commute, privacy, and control. On the other hand, it carries significant responsibilities with it. These include car maintenance, safe driving, and budgeting. Before you deal with all that, you have to decide between buying a car or leasing one.
Before you make your decision, however, you need to understand what each entails. One has certain advantages over the other. In this article, we will tackle the pros and cons of buying a car instead of leasing.
Pros of buying a car
The vehicle is entirely yours, no restrictions
Full ownership is probably the best thing about buying instead of leasing. The car is one hundred percent yours, which means you can do anything you want with it. There are no range or speed limits (granted you are a responsible driver), and you can customize it at your own will. Plus, you don’t have to worry about additional fees when you modify your ride.
Monthly payments are lower (if you don’t use a loan)
If you pay in full with cash, you won’t have to worry about monthly payments. That’s one thing off the checklist. All you have to think about now are the other responsibilities like maintenance.
Cheaper in the long run
Leasing a car for the long-term will cost more because there is a constant outflow of money because of fixed monthly payments. Alternatively, you won’t have that in the long run. Even if you are on a vehicle load, you will pay it off eventually, and when that’s over, monthly expenses will be at a minimum.
Cons of buying a car
Monthly payments are higher (if you use a loan)
It was previously stated that fees are lower with a purchased car. However, there are downsides to this, specifically if you don’t know how to budget with a loan.
When you buy a car with a loan, you are paying it fully. So, aside from personal matters and a budget for car maintenance, there are monthly paying off your loan. This means expenses are higher than with a lease.
Repairs after the warranty expires
When you purchase a car, it comes with a standard warranty. This covers certain expenses to an extent. On the other hand, when the warranty has run its course, you have to shoulder all car expenses, including any future repairs.
The long process of reselling
One good think about a lease is that you don’t have the responsibility of reselling the car in the end. When the contract is up, you just have to part with the vehicle and then maybe pick another one.
On the other hand, when you buy a car, you have to think of the future, as well. At some point, you will think about reselling, whether its to upgrade and buy a new car or some other reason. You might get profit in the end, but the whole process is grueling and lengthy. There isn’t even a guarantee that you will be able to sell the vehicle.