We often think that it is easy to choose between two things but we are not always provided with black and white choices. One can easily prefer tea over coffee or vice versa but when it comes to more important decisions the choices often become elusive. Financial choices are most notorious owing to their vagueness. The decisions which involve money cannot be based on preferences alone. It is the art of spending that saves us from bankruptcy after short-lived luxury.
One of the most widely asked and often misunderstood questions is on buying or leasing a car. Gone are the days when cars were considered a luxury only as now, they have become a necessity. Resorting to preference is not enough in choosing between leasing or buying a car. Though leasing can be tempting as they provide you the opportunity to upgrade your vehicles after a short time but the downside is you will never own it.
In simple terms, car leasing allows you to drive a car in exchange for monthly payments without owning it at the end of the agreed term. Leases can be very tempting, especially for those who plan to keep the car only for a short time. The greatest advantage leasing offers is smaller monthly payments with no worry of price depreciation. So, the customer considers it a win-win situation as he gets a brand-new car against a low monthly payment. One has to find a car leasing company in Brooklyn as banks are often reluctant in leasing the cars.
But the underlying truth is rather harsh. Leases put a cap on your car use. There is a set mileage limit on every leased vehicle where the violator is fined for exceeding the prescribed limit. It depends on your use whether a limit of 35000 miles suits you or not. Higher limits mean you have to pay more upfront.
As the car comes on the road, wearing is inevitable. As per most agreements, normal wear is allowed. Wear and tear above normality results in extra charging. The problem arises in the determination of the degree of wear and tear. Although they are all provided in the agreement their language is often above the scope of common people.
It is often advised to opt for buying and only go for leasing when you have no feasible option left. The best argument to support this point is that car payments will eventually end whereas lease payments won’t. They would keep going until you turn the car in. Whether you use the car or not, you would have to pay the rent. In short, you will never own it and at the end of the lease term, you will have nothing to show for the money except your use which is already in the past. On the other hand, when your loan is paid off the car still has some value and is under your ownership. When you break both leasing and buying down, in the end, buyers are often better off than renters as the payment differences are not much and the ownership of the car at the end adds up as a plus factor.
Apart from some exceptions, buying a car is often a more prudent option than leasing one. You can read more about car leasing in Brooklyn before making a move.