Jack B. Gammon

Which is better, to buy a new car or to lease one?

Most consumers will think that the concept of car leasing is the same as that of apartment leasing. So, of course, they will assume that buying a car is the better deal.

Car leasing is not the same as car renting. The most concise way to explain car renting is to look at it in the same way as apartment renting where you simply rent a car for the number of days you need it, you pay for renting it and then you give the car back to the owner once you’re done using it. In contrast, car leasing is a form of financing, and in many cases, it is a better option than buying a new car straight out.

The concept of car leasing can be similar to loan financing. You lease a particular car model for the specified amount of years, you pay monthly payments based on the agreed lease terms and you pay for everything else with regards to it which includes insurance coverage, repair and maintenance and fuel consumption. At the end of the lease, you have the option to renew the lease, buy the car, trade it in and lease another car or you just simply end the lease and walk away with nothing else involved.

In leasing a car, you only get to pay for what you actually used. When you look at it in terms of depreciation value, you’re not paying for the cars’ decrease of value over time. So, that’s a really major advantage as against buying a new car.

Learn more how you can utilize the advantage of car leasing to finance any car investment you make.