It’s the age-old debate, is it smarter to lease or buy a car. Some will argue until they are red in the face that buying is better, but others see how car depreciate and are pro-leasing. We here at Cash 4 Cars Cincinnati are realist and we are here to bring you the pros and cons, so you can make the best decision for you.
Here are 5 reasons leasing is not the best option:
- An ideal car loan should be 48 months or less – after which you’ll be driving the car payment free for as long as you desire (or as long as the car lasts). (from realcartips.com).
- If you tend to drive over 15,000 miles per year, than leasing is going to be costly for you. Most leases only allow you to drive between 12,000 and 15,000 miles per year – anything above that and you have to pay some stiff penalties.(from realcartips.com).
- Since you don’t actually own a leased vehicle, you can’t resell it. (from ehow.com)
- Another reason not to lease a car is the higher insurance requirements that most lease agreements impose on you. While you’ll still need basic insurance coverage either way, purchasing and owning your own vehicle will allow you to forgo the expensive collision and comprehensive coverage that you would otherwise be required to purchase.(from ehow.com)
- Leasing a car is sort of like renting an apartment. You really can’t claim ownership of anything, the car really isn’t an asset and you can’t completely modify it the way you would like. So what it boils down to is you’ve made monthly payments, but at the end you really don’t own anything.(from budgeting.thenest.com)
Gee, you most think we are totally anti-lease. Well, it has it’s benefits as well. Here are some of the pros of leasing:
- Cars are not an appreciable asset. The moment you drive a car off the lot it begins to lose value. But when you lease, you don’t have to worry about that depreciation, since the car isn’t technically yours. The miles you put on the car are your only cost and that’s exactly what you’re paying for.(from autoguide.com)
- Because new-car warranties typically last three years (the length of most leases), you don’t have to worry about repairs. Some manufacturers, such as BMW and Volvo, offer free maintenance, too. (from kiplinger.com)
- Your monthly cash flow: Leasing a car often has a lower monthly payment compared to financing a car with the same loan terms, since with a lease you’re paying for the depreciation of the car during those years rather than the whole vehicle cost. If you need access to more cash every month, leasing may be more favorable.(from lifehacker.com)
Good luck, with this information you are armed to move forth and get a car, with whichever method is best for you. And if you do have a car to sell, call us at 513-898-1889 or click here for a fast and free quote.