Car Leasing vs. Buying: What’s the Best Option?
Millions of cars are being manufactured every year. Nonetheless, buying one certainly isn’t an easy feat to achieve. Even the least expensive car can cost thousands of dollars and not everyone has that kind of money lying in their accounts. So if you cannot afford to pay all the amount at once, then the only option you’re left with is leasing a car. In fact, more and more people have been leasing cars as it helps them get their dream ride without completely exhausting their funds.
However, when it comes to leasing a car some people often face problems and are not able to find reliable lease companies. Thus, if you want to make your hunt easier, then do not worry as you can find a comprehensive list of some of the best car leasers along with their reviews on Collected.Reviews.
With that said, to some people, car leasing often sounds like an option that’s too good to be true. After all, what’s in it for the leasing companies and how do they even make money? In this article, we will answer this and along with other questions whether you should buy or lease a car.
How do Car Lease Companies make Money?
The way car lease companies make money is pretty straightforward. Although it may become convenient for you as you’ll only have to pay a fixed monthly amount, the biggest drawback is that you’ll have to pay more than the original amount of the car. But we can’t really blame leasing companies for that as they’re offering us an option to conveniently buy our dream car.
Along with the original price of the car, you will be charged a certain %age of interest, and that interest is what keeps their leasing business running and how they make money.
Should I Lease or Buy a Car?
Wondering whether you should lease or buy a car? One of the biggest differences between leasing and buying is that leasing wouldn’t actually give you the ownership of the car until you’ve fully cleared the payment. This is why if you want to get the ownership as soon as possible, then buying a car is the way to go. However, for most people that doesn’t matter and as long as you’re clearing the payments on time to the leasing company then you’ll eventually get the ownership.
Let’s further look at the main benefits of leasing as compared to buying a car:
- Control of Your Finances: When you’re leasing a car, you have full control of your finances. You don’t have to exhaust all your savings and you can go for monthly payments according to your budget.
- Buying your Dream Car: Knowing how expensive cars can be, if you’re buying a car then you may not have too many options. However, when you’re leasing a car the possibilities are endless as you do not have to pay the full amount upfront.
The Bottom Line
So if you’re finding yourself short on cash, then leasing a car is certainly an option to consider. Although you’ll pay an extra amount, it isn’t a bad trade-off.