Why it’s Better to Buy a Car Than to Lease One

December 12th, 2014 by

Buy or Lease

When it’s time to get a new car, you have two options: Buy a car or lease one. There are advantages to both, depending on your unique financial circumstances and needs.

However, in general, it’s better to buy a car than to lease one. Here’s why:

It’s Cheaper

When you lease a car, you are paying against the projected value of the car when the lease is over. You are also paying interest. In the short term, it can be less expensive because you will likely have lower payments. However, in the long term, buying your car is much less expensive. You could have the car for 10 or 15 years, and when you stretch the amount you paid over the time, it’s far, far less than leasing.

You Gain an Asset

You typically lease a car for about three years then turn it back in to the dealership. You are basically renting the car. When you buy a car, you are gaining an asset. Once you pay it off, the car is yours to do with what you want. You can pass it down to a child, or you can sell it. Either way, you are getting more value out of it.

There are No Mileage Restrictions

Your lease term is not just limited by time, but also miles. Most standard terms are for 9,000, 12,000 or 15,000 miles per year. If you go over these estimates, you will have to pay a per­mile fee, which can add up to quite a lot. When you buy your own car, you can drive it as many miles as you want without repercussion.

You Have More Financing Options

In most cases, you have to have really good credit to lease a car. However, when you buy a car, you can qualify for financing even if you have bad credit. Buy Here Pay Here dealerships in Rhode Island are a good choice since they provide financing for people with all types of credit. You can get the car you need even if your credit score isn’t perfect.

Of course, you always have to make the decision that’s best for your personal needs and circumstances. However, in general, it’s going to be better to buy a car than to lease one.