Buy or lease? This is the question challenging car buyers today. When you’re in the market for a new car there are a lot of decisions to make. Sales people at a dealership will always try to push a lease on their customers. Be aware of it as it’s better to buy and own a car outright than to lease one. Sure, you’ll get access to a new model every few years when leasing but the terms and conditions coming with the agreement are often restrictive, punitive and downright expensive. Buying a car and paying it off will be more beneficial in the long run.
Deciding to lease often means you’re focused on the short term picture. Leases usually require a smaller down payment and feature lower monthly payments than a loan. In addition to costing less in many cases, buying also has its advantages like flexibility, ability to customise and simplicity.
A lot of factors influence whether it’s cheaper to lease or buy your car, such as the number of kilometres you drive and how well the car retains its value. It’s better to buy a car with a good resale value. Here are six reasons why it’s better to buy your next car instead of leasing.
The monthly payments will stop
Car dealerships love it when customers take out a lease as they know weekly or monthly payments won’t stop. When your lease ends, the salesman will put you immediately on another lease, which means continuing your payment. The biggest benefit of buying is you’ll eventually pay off your car and get the satisfaction of driving it without any monthly payments. It’s always wise to buy a car you’ll be able to pay off within four years time. Then you can keep the car for an extra five or six years and drive payment free. Leases may provide lower monthly payments but those payments never stop, making it more expensive than buying in the long term.
You’re the owner
When a lease term ends people have to turn the vehicle in and don’t get anything in return. However, people who own a car have an asset they can sell in order to get money to buy another one. A car might be a depreciating asset as it won’t be worth as much as you paid for it but it’s still worth something. You can still sell your car after driving it for a few years, depending on its condition. Selling a used car that you’ve driven for a few years is better than returning a leased vehicle and getting nothing in return.
No negotiations with a lease
Whenever you think of buying a car, think of negotiation. If you don't want to pay for certain fees or something extra, you can negotiate. Want to pay a lower price than the original price? Negotiation is your answer. If you want anything extra in your car you can have a quick chat with the salesman. Unfortunately, none of that is possible when taking out a lease. With a lease, only one thing might be negotiable, the length of the lease. Many leases are standard, giving little or no room for negotiation.
Drive your car as much as you want
When you buy a car, you can drive it as much as you want. Whether you only drive to work on a daily basis or go on a road trip every second weekend, it doesn’t matter because the car is in your name. But with a lease, you’ll get a restricted amount of kilometres that you can drive per year. If you go over the limit, you’ll find yourself paying more on a monthly basis. This is set in place to protect the dealer to ensure they can lease the car again. Or, possibly, sell second hand.
You’re responsible as a leaseholder
Owning a car means you won’t have to worry about any scratches and blemishes, although it’ll influence the value of the car. In a lease, the leaseholder is responsible for any damage to the car. If there are damages, you should get yourself ready to pay extra.
It’s always best to buy your car
If you like to impress or have a job where it’s required for you to change cars often then leasing might be a better option. But if you’re not in that situation, then buying a car is the best choice. For instance, there are a lot of used Polos for sale at affordable prices that you’ll be able to buy. Always check whether or not you can afford to buy a car before taking out a lease or buying.
Leasing a car might be popular but buying a car and keeping it for a number of years tends to be more economical in the long run.