Why Buy Instead of Lease

When it comes to getting a new vehicle, there’s always a lot of important choices to be made. However, few are as important as deciding whether to buy or lease. As conventional wisdom would tell you, buying simply makes more sense for most people. Here’s a look at some of the top reasons for purchasing a vehicle rather than leasing it:

• One of the best reasons to purchase your car instead of lease it is that you’ll be able to build up equity in the vehicle. That means after it’s been paid off and you’re ready to move on, you can sell the car and put the profits toward a new one. You could also simply keep your vehicle for as long as possible and take advantage of not having an auto payment once it’s been paid off. That’s the type of long-term savings that leasing just cannot beat.
• There’s a lot of restrictions and underlying fine print in many lease agreements that tend to get overlooked. Many first time leasers are surprised to find out their lease puts a mileage limit on their vehicle. Going over that limit could lead to extra fees and penalties, which could make leasing more expensive than buying for drivers that put on a lot of miles.
• Do you like to customize parts of your vehicle? Whether it’s a custom paint job, an aftermarket stereo or stylish spoiler, your leasing agreement may restrict any changes you make on the car. With purchasing your car, you have the freedom to do just about anything you want to it.
• When you purchase a vehicle, it’s your decision whether or not you want to have every little scratch and ding on your repaired. We all want to take care of our cars, but sometimes the price of a minor cosmetic repair is simply not worth the cost. By leasing a vehicle though, you agree to have the car inspected when the lease ends and be responsible for any damage its attained.
• A major problem with leasing involves your auto insurance coverage. Should your car ever be totaled in an accident, your insurance provider will pay the leasing company back. However, since most insurers only reimburse customers at the vehicle’s market value, you may find yourself responsible for the difference still owed on the lease.
• Supporters of leasing tout the ability to get a new vehicle every several years as an advantage, but in reality, you can get the same benefit from purchasing. In fact, buying your car gives you the absolute freedom to get a new one whenever you see fit. If it turns out you’re not pleased with your current vehicle, you can simply sell it or trade it into a dealer and use the profits to purchase a completely new car. When you lease, you’re forced to adhere to the terms of your leasing agreement and breaking them will most certainly cost you extra.