The tough question posed before you are – should you buy a car or lease instead? Making the decision can be quite nerve wrecking for most people, as they are lost between the two options. They weigh their advantages and disadvantages, trying to come to a conclusion. Sometimes discussions with friends, colleagues and family members might seem conclusive until they put in their situation, and they are back in the same place they started off in. there is no one right answer to this question, it all depends on the person who is looking to pick up a car.
There are some for whom leasing is not even an option, they firmly believe that owning a car is the only way out. But this might not work out for people across grades, with different financial backgrounds. One should consider their personal situation and understand that buying a car is better than leasing one in certain exceptional cases only.
For people who are looking at making a large investment, they can go for buying a car. It will work out better, since they put in all their savings into something that becomes an asset. This also holds true for people who love travelling and would love to own a car.
In other cases, people who would rather do away with monthly payment hassles and just go ahead and make a one time payment, buying is the only option. Also while compared to leasing, here they get a few additional benefits and features that works to their advantage. Leasing on the other hand gives them wondering if they can meet monthly payments and what will happen if they don’t meet them. There are no chances of the car getting repossessed in case of ownership, since the car belongs to the person.
The insurance on the car will be better and higher while buying a car as against leasing it out. In case of buying a car, one can pick up a full insurance policy or a third party coverage based on their requirement. Whereas for leasing out, the insurance will be quite a high amount, and there are no coverage provided.
If you are a car enthusiast, you would be interested in changing your car every couple of years, which is possible if you own it. You can go ahead, sell the car and buy one of the latest models, where as if you have leased out a car, you are stuck with it for the duration of the lease agreement.
Modifications of any kind cannot be made to a leased car, whereas if you wish t change the speakers, or add a new music system, you can do that to your own car. For people who enjoy changing the car colours, upholstery, or adding some fancy fittings, buying is the easy way out, as they don’t need any permission from another person or company.
So, depending on what your situation is, it is better to buy a car than lease it out.