Car Leasing Versus Buy

Lease or buy decision is very hard to think it over. The two options have their own advantages and disadvantages. This decision will be based on how we will perceive things. There will be some factors to consider if we should buy or lease a car. In Chicago, where almost all people there have their cars, leasing is very rampant than buying as they prefer to pay monthly dues than pay it instantly in full. Here are some things you may try to consider before you buy or lease a car.

1. If you choose a long term lease, it will be much expensive than buying a car. If you prefer leasing, apply for the short term lease as you will only be paying for the months you will lease it and not for the full amount of the car.
2. The maintenance of the car, damages and repairs will be charged to the leasing firm. Unlike with buying a car, repairs and maintenance can only last for two-three years. That will be just the same with leasing but when it expires, you will shoulder all the expenses for your car.
3. In a leasing program, you may pay for the mileage charge if you exceeded to the mileage limit. Moreover, you may also pay for any damage to the car which is beyond the normal wear and tear of the vehicle. In buying a car, you can drive as long as you want without thinking of the mileage limit and less pressure when unexpected damage was made on the car.
4. Leasing means you are just renting the car unlike buying, you have the ownership of the car. You have the right to change it, paint it and even add equipments on it or upgrades.
5. How stable is your life? If you are uncertain for the next two-three years of your stable life and would still prefer to have a car, it would be better to buy one instead of leasing. You will incur more expenses when you are not sure of what your future brings and might end up with terminating your lease early. Buying a car would mean less worries of paying more bills monthly.
6. In leasing a car, you would have to add another expense for insurance in case of theft, accidents and other unfortunate instances. You would have to apply for GAP, or Guaranteed Asset Protection insurance (http://www.ala.co.uk) to ensure that the amount paid out in the event of the total loss is equal to the amount of the car when it was new; thus you will not owe anything from the leasing firm. Buying a car will not require you for GAP.

Whether you will buy or lease a car, the bottom line here is on how and where you can save if you will use a specific method. Leasing a car would mean obligations to pay the monthly payment and more responsibilities in taking care of the car while in buying. It would mean putting your savings account into a fast depreciation and cannot maximize your money at hand. Car is now becoming a necessity especially to cities like Chicago where people need to transport every now and then. So, between buying and leasing, think of the pros and cons to have a better decision making.