There is always this argument of which one is better, buying or leasing a car. The clear answer is “It depends on your personal situation and needs.” Although most people purchase a car, leasing is a very good alternative for someone who wants to have a low monthly payment or experience a brand new car often. But be very wary when going to the dealership as most salesperson will push for the lease because of a higher commission that they’ll get.


Advantages of Leasing A Car 

  • Cars depreciates in value and lessees don’t have to worry about this.
  • Drivers don’t have to deal with hefty maintenance bills. 
  • A lease may offer lower monthly payments, for people with good credit, and lessees can invest the difference in a mutual fund for a higher rate of return
  • Consumers will always have purchasing flexibility - after a lease term, choose another car. It’s like a three- or four-year test drive.
  • Unlike financing, the terms on the lease are normally less than 5 years. Many consumers can drive away with the latest model, even a luxury car, with less cash upfront. 
  • Lessees can enjoy the latest safety and technology innovations on the road
  • You can write off your leasing payment as a business expense (subject to IRS restrictions) if you’re a business person. 

 Advantages of Buying A Car

  • You don’t have to deal with any restrictions that are common with a short term lease.
  • Your monthly car payments ends either after 3 or 5 years depending on your financing terms - leasing offers no such relief.
  • You don’t have to worry about mileage limits per year. Lessees have to pay an additional amount for every miles over the limit.
  • Car owners can also worry less about wear-and-tear. They don’t have to return the car and get penalized for additional money if they return the car in poor condition.
  • Future owners looking to finance will enjoy large cash rebates and low-interest financing (assuming you have a very good credit)

Source: Iona Sentinel Standard

Photo: form Nada.org courtesy of Yahoo Image Search