Cars are the ultimate statement piece. So if you want to roll up in something brand spanking new every three or four years, then maybe you should consider leasing a car.
A lease is an agreement with a dealer like Lincoln car dealers to rent a car for a fixed amount of time. It is entirely different from buying a vehicle outright. You can purchase the vehicle, renew the lease, or lease a different one when the lease ends. Check out the pros and cons of both leasing and buying a car so you can decide which works best for you.
Advantages of Leasing a Vehicle
- Cheaper Monthly Payments
The payments you make each month will be less compared to payments for a bought car. This means that you can choose a pricier model that you wouldn’t ordinarily get since the monthly payments will be comparatively low.
- Stress-Free Maintenance
The average car gets a three-year warranty, so your maintenance costs are fully covered when you lease one. After the lease period, you return the vehicle to the dealer. Your only concern will be ensuring that your car is returned in the agreed-upon condition.
- Tax Deductions
The IRS allows you to use the depreciation of a lease as tax write-offs. Even though not many car buyers consider this fact when they purchase, this is undoubtedly an unexpected plus.
- Option to Purchase the Vehicle at the End of the Lease Period
If you decide to keep using your leased vehicle but want to own it, you can buy it from the dealership. The price is usually the amount derived by offsetting all the payments already made.
Disadvantages of Leasing a Vehicle
There’s only one true disadvantage to leasing a car: the inability to build value. Leasing doesn’t allow you to build equity, and it can’t be sold for any additional income or profit in the future. A leased car is only for the roads.
Advantages of Buying a Car
- New Car Smell
This is a car that no one else has used extensively. You know for sure that you are the first one to take it home. Mechanical issues are unlikely, and the mileage will be in its infancy.
- Fully Customizable
Customize the car over in your style. You can choose the interior, or you can decide to wrap it in an unusual color to turn heads wherever you go. Buying means the car can be personalized to fit your needs.
- State-of-the-Art Safety Features
Newer cars are often actively reviewed by the company. This means that your car will be loaded with the best safety features on the market. This could include blind-spot monitoring or assisted parking, features that might not be readily available with a lease.
- Ownership
Ownership equals equity. Even while you sit in your car day-in and day-out, it’s still going to be worth a pretty penny when you decide to sell. You may not get as much as you paid for it, but you will get at least three-quarters of what you spent back into your pocket.
Disadvantages of Buying a Car
- Higher Initial Expense
The down payment, extended warranty, and mechanic’s overview will cost a large sum from the get-go. This also means that you will have to be prudent about what you pick, making sure it fits your budget, and you can’t simply choose what you want.
- Higher Monthly Payments
While you can choose to buy a car with monthly installments well within your means, it will still be cheaper if you leased it. These amounts can be almost 30% higher than the leasing amount, so you will have to spend more for the same car each month.
Make sure to go through the list carefully before making your final decision. Check out Lincoln dealerships like Baldwin Lincoln in the New Orleans, LA area if you need additional advice.
