Lease a Vehicle or Buy It? The Pros and Cons, to See Clearly
May 16 2020, Lexus Laval
The question has crossed the mind of every consumer; is it in my best interest to buy or lease my next vehicle? If the answer were simple, everyone would opt for the same solution. However, this is not the case. This proves that each has its advantages. Here are a few things to make it a little clearer.
A hassle-free acquisition
By opting to lease, many consumers are choosing a hassle-free purchase. For one thing, it allows them to enjoy a vehicle that is always new. Most importantly, before it starts needing some mechanical repairs, it's returned to the dealership to leave with a new one. By the way, for business owners, it is also possible to take advantage of tax benefits by going there for a lease.
As a bonus, you get away with lower monthly payments because all you have to pay each month is the amount that covers the difference between the purchase price and the residual value of the vehicle at the end of the lease. You pay less tax, too, of course.
The only thing is that you don't have the pleasure of owning your vehicle. This means that you must keep it as original and also make sure that you respect the mileage limit set by the contract. Otherwise, a fee will be charged when the vehicle is returned. The same goes for repairs that would be deemed necessary to the bodywork if negligence is shown.
Become an owner
By going in for a purchase, you agree to make a few compromises such as paying a little more each month and also accept that you will have to assume the cost of repairing the vehicle once the warranty is over. There will be some, certainly, because of the wear and tear of time. You must also be comfortable with driving a vehicle that will be less state-of-the-art after six, seven or ten years! For some, this is not a problem.
On the other hand, by being the owner of the vehicle, you are free to do anything about it. It can be small modifications or the decision to drive around America without fear of adding too many kilometres to the odometer. You can also decide to get rid of it when you think it's time to do so. Finally, when you take care of a vehicle's condition, you can minimize the cost of maintaining it and it can serve you for many years after it has been fully paid for.
In short, as you can see, there is no quick fix. Each one is tailored to specific needs - yours. All you must do is determine them in order to go with what will be most advantageous for you.
