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This is a common dilemma faced by many – is it more beneficial to buy a car or lease it? The answer can’t be wrapped in a single sentence, because there are too many parameters depending on this decision. What works for someone else, might not work for you, which is why it is important to weigh the pros & cons of both options and then make up your mind.

Leasing a Car

Pros
• You get a car for a price that is lesser than the amount you have to shell out while buying.
• The down payment is more negotiable – far more flexibility than purchasing a car.
• Leases last for specific time periods – usually 3 years – the length of several new-car bumper-to-bumper warranties, thereby guaranteeing the vehicle is covered under warranty while the lease is valid.
• Advanced features and other technology will be available.
• No need to worry about selling it or getting a decent price for your trade-in – your responsibility ends once you turn in the car on expiration of the lease.
Cons
• Low down payments mean higher monthly fees.
• You have to pay more at the end of the lease if there is any damage to the car.
• Mileage is restricted – you are charged on crossing the limit.
• You can’t make alterations to the car – minor ones are permissible but major changes are not allowed – read the contract to check the limitations.
Buying a Car
Pros

• You build equity in the vehicle as you pay off your car loan – once you pay off the entire amount you gain full ownership.
• Keep it as long as you wish to without bothering about monthly fees (after paying off loan).
• You don’t have to adhere to a particular mileage.
• You can make changes as per your wish – buy a new sound system, get it repainted, add a couple of features – do whatever you want!
Cons
• After purchasing a car, you have to take chances on its resale value when you sell or trade it in.
• A generous down payment – ranging between 10 to 20 percent – is required, or else there is no deal.
• The longer you take to pay the car loan, the more interest you need to shell out – it can take a toll on other expenditures.
Think about your requirements and then decide – it can’t be a one-size-fits-all concept, so take your time!

 

For all your car needs , head over to Kenn Garaff Used cars, you will be happy you did.

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