Car Leasing and Owning- Major Points of Differences
Are you planning to buy a car? If so, you have likely seen or experienced a mix-up between buying and leasing. There is no doubt that this decision can be difficult and should be thought through. at a higher price, of course, but it means peace of mind and an asset on your behalf. But if low maintenance is really your thing and you don’t want to keep the car long, then leasing should be a more viable option.
Being Safe:
By now you may have been on the lookout for advanced driver assistance technologies like adaptive cruise control and front emergency braking for a long time, but you know they will never be available on 10-12 year old cars. Cost should consider leasing as the best option. Since a leased vehicle is always a new vehicle, the loss in value is significantly lower than that of a used vehicle.
What Do Leasing and Owning Vehicles Include?
| Leasing | Owning | |
| Ownership Period | Unless the user buys the leased vehicle, it must be returned at the end of the lease term | The car can be kept for as long as the owner wants |
| Early Termination | A premature lease termination may prove to be just as costly as the period remaining with the contract | Sell or trade the vehicle at any time |
| Payments up Front | Expect to pay a refundable security deposit, a down payment, the first month’s payment, taxes, acquisition fee, and other fees | Registration, Down payment for loan or cash price, taxes, and other similar fees |
| Future of Current Value | Depreciation will not affect you as a lessee | Although the value will depreciate, you can use the vehicle’s value in cash |
| Level of Wear and Tear | Lessees will always have to pay extra charges resulting from excessive wear and tear | Other than impacting resale value, there’s no need to worry about wear and tear
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| Distance Travelled | Leases restrict the miles to be covered year, allowing a range from 10,000-12,000. Travelling more than this would require you to pay an extra fee, unless you can negotiate for a higher limit. | No restriction on number of miles |
| Returning the Vehicle | Wait for the end of the lease term and return the car after turning in end-of-lease costs | You would not be returning but selling or trading the car here |
| Customization | Strip the car of modifications before return. You may need to pay for residual damages, if any. | No restriction on vehicle customization here, though it may nullify vehicle warranty |
| End of Term | You have the option to buy or lease another vehicle after the current one is returned | No payments will remain upon paying off the new car loan, leaving you with equity for a new vehicle soon |
There are certainly many advantages and disadvantages of owning or leasing a vehicle, make sure you make the best decision considering your mobility needs, you certainly don’t have to worry about carpooling after taking over a vehicle.
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