Buying vs Leasing a Car – Pros and Cons

 

buying vs leasingWhen it comes to obtaining a new car many people have a hard time with the buying vs leasing decision.  Sometimes, people make the wrong choice due to insufficient information.

Advantages and Disadvantages of Buying a Car

Buying a car guarantees that the car will be fully yours once you pay it off and much later after that, you can sell it if you want to.  A new car offers safety because no one has used the car before you.  You have warranty when you purchase a car at a dealership.  So far everything sounds really good; however there are a few disadvantages to consider.  In most cases, buying a car means you will have a higher monthly payment.  Also, after you pay the car off, you may start having serious problems with the car causing you to spend money constantly.

Advantages and Disadvantages of Leasing a Car

Leasing a car is a cheaper option because in most cases, you do not have to give a down payment and if you do have to give a down payment, it will be very low.  The monthly payment is also much lower than when you lease a car.  You  have the luxury of driving a brand new car every three years or so.  The cost of maintenance and repair is less because you only have the car for a short period of time.There are three main disadvantages to leasing a car.  The first disadvantage is that you never get to own your car and you have to worry about any minor scratch or stain because the dealer will charge you for that when you turn in the car.  The second disadvantage is that if you go over the mileage, you will have to pay mileage fees.  The third disadvantage is that you will be required to pay higher insurance for the leased car.

Beware of lease discontinuation fees. These fees are charged at the end of your lease and are usually waived only if you lease another car from the same dealership.

For assistance with your lease or purchase, you can employ an auto buyers agent. These auto buyers agents can help you make the best choice to fit within your budget and try to get you the best possible price on the car you want.

Free Credit Report

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The website, annualcredfree credit reportitreport.com, offers you the ability to pull your free credit report WITHOUT SCORES once per year from each of the credit reporting companies, Equifax, Experian and TransUnion. This process does not affect your credit in any way. It is important to see what’s on your credit report at least once a year to verify that there are no inaccuracies reported that may be affecting your score.

When pulling your free credit report online, there are a series of security questions that you will be asked to ascertain your identity prior to allowing you access. If you cannot answer them, you are still able to send a letter directly to the credit agency to make your request. Annualcreditreport.com gives you the information necessary to do so in the event this should occur.

There is an advantage to pulling all three credit bureau files at once. You have the opportunity to compare all three reports. You may find that not all credit reports will contain the same items. The only hitch is that you can only pull a free credit report once per year from each agency. If you have already done so and would like to repull your credit, there are other options to obtain the “tri-bureau” reports.


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