To buy or to lease? Every automobile buyer is often faced with this question when he intends to buy a car. When you decide to shop around for a new car, you have to make a lot of decisions regarding how you will invest in your future ride.

For instance, you could choose to buy your automobile outright, but it would require wads of cash that you may not often carry around. The other option you have is to finance your car with an auto loan or Lease your vehicle. Each of these options are great, and each comes with its own advantages and disadvantages. That’s why you must go for an option that perfectly fits your preferences.

Choose wisely - Buying vs. Leasing

Leasing is simply another way to buy a car. It allows you to drive a new vehicle without paying a large sum of cash or taking out a loan. You simply make a small down payment followed by monthly payments for the term of the lease. When the term expires, you return the vehicle.

In both Buying and Leasing, there are pros and cons that might help you decide how to pay for your next car. If you opt for Leasing, a lease requires little or no money down and offers lower monthly payments. But when the Lease ends, you will have some decisions to make.

On the other hand, you can Purchase the vehicle. You just buy the vehicle for the purchase price listed on your agreement.  It’s also known as a buyout. You can finance your purchase and commence making monthly payments or spend money and purchase the vehicle in one go.

Here are some tips to help you decide whether to buy or lease:

Leasing – Helps you:

Drive a more expensive car for less money.
Drive a new car every few years.
No trade-in issues when the lease ends.
A new car covered by warranty.
Enjoy the newest safety and convenience features.

Buying – Gives You:

More flexibility so you can sell the car anytime.
Freedom from sudden, unexpected mileage penalties for longer driving.
Savings in the long run thanks to lower expenses.
Flexibility to modify your car to your tastes.

As you can see, there are advantages and disadvantages to both leasing and buying. It really comes down to personal preference.