User:Zaira786/Leasing vs. Buying

The option to lease or buy when looking at purchasing a vehicle can be determined by understanding a few simple steps. Leasing is when a consumer pays for a vehicle in monthly installments for an allotted amount of time like a traditional loan. The difference with leasing is that the monthly payments are a lot lower versus buying for the same amount of time. In a lease you never own the car and after the monthly installments are over you have the option to purchase it at a pre agreed price or give it back to the finance company. When purchasing a vehicle after you finish your monthly payments you own the vehicle free and clear. In a lease contract you can only drive a certain amount of miles each year and are responsible for any wear and tear on the car at the time of lease termination .If you decide to give it back to the finance company instead of buying it you are responsible for wear and tear and excess miles if they exceed the allotted amount. The advantage to leasing is that you can get a new car every 3 to 4 years but you have will always have to make a payment. Once you buy a vehicle you own it free and clear and do not need to worry about monthly payments. Leasing makes sense for those who do not drive a great amount and want a new vehicle every 2 to 3 years without a high payment. Buying is more practical for those who drive a lot every year and want to own a car for a long period of time. Either leasing or buying can be good options depending on your lifestyle and budget.

References:

http://www.leaseguide.com/lease03.htm

http://www.edmunds.com/advice/buying/articles/47079/article.html