Ownership
Unlike vehicle ownership, leasing means you are required to return the car at the end of your lease. The upside is that you don’t have to deal with selling your vehicle, you just return it to the leasing company, pay any fees, and walk away. On the other hand, you gain no equity in the vehicle and any cash value you would have gained from ownership doesn’t exist.
Up Front Costs
Buying a car is expensive. If you are trying to own, you are looking at paying the full cash price or at least a down payment, registration, and taxes. With leasing, your down payment will generally be less and you will have to pay your first month’s payment, a security deposit, registration, and other fees. Depending on the situation, either can present a better value, so be sure to shop around.
Monthly Payments
If you take out a loan for ownership, your payments will almost always be higher than lease payments as you are acquiring the value of the vehicle rather than paying for its depreciation. That being said, when paying to own, you end up with a car, rather than nothing.
Mileage and Wear and Tear
Leased vehicles generally have mileage limits for how much you can drive per year and charge for excessive wear and tear. You’ll have to pay if you go over your miles with the lease, limiting your freedom of mobility. If you own the car, you are only hurting your own future resale earnings, so you can worry as much or as little as you want.
The Toss Up
Essentially, you are choosing to be locked into a contract or be free to use your car at will. Leases can be beneficial for those who are not looking for a very long term commitment to a vehicle or those who don’t have the start up cash or desire to take out the loan necessary to buy a vehicle of their own.
However, in general, we think that it makes the most financial sense in the long run to buy a vehicle, especially if you drive lots of miles or have kids/pets that will dirty and damage your vehicle. Furthermore, in the end, you will have an asset to resell and you can do whatever you want with your vehicle without worrying about repercussions.
How to Use This Information
Whichever route you choose to go by, we will be there to fix your car when it is in need of repair. Whether it is a leased vehicle or owned by you, we will provide you with our standard outstanding service at an excellent price. Be sure to give Accurate Auto Body a call at 303-344-2122 or contact us through our website and we will be happy to help.
Do you prefer to lease or buy your vehicles?
