Advantages and Disadvantages of Financing vs. Car Leasing
If one is shopping for a new car, they’re probably thinking about the price, color, model, and make. However, once that decision has been made, the next big decision is whether one wants to buy the car by financing or leasing. Each option has its own set of pros and cons, and one needs to consider their financial situation and intended use of the car which can help them decide their best option. Finance vs. leasing a car comes with the following advantages and disadvantages: 1. Advantages of financing a car When one owns a car, they do not have to fork over thousands of dollars as a fee for damage such as paint scratches or upholstery stains, and neither do they have to worry about annual limits on the mileage they can drive. One can also sell their car anytime without incurring any penalty. What’s more, as one pays their loan, they tend to build equity in their vehicle, which could, in turn, become a down payment for possibly new wheels in the future. So, hanging on to the car long enough can result in no payment at all. 2. Drawbacks of financing a car Buying a car means paying for its entire worth, unlike leasing, which essentially translates to less car/dollar of one’s monthly payments as compared to leasing.