You may have gotten mixed opinions on whether to lease or own a car. Many people are leasing cars today since the expense to own a car is so high. There are advantages and disadvantages to both from an automobile transport standpoint, but with leasing, you never stop paying for the vehicle. Especially with millennials, leasing does not seem to be slowing down anytime soon.
People Have Slowed Down on Owning Property
Whether it’s owning a house or a car, people have taken the less expensive payments upfront no in turn not own the property. The benefit is there is a lot less liability and you do not have to worry about any repairs or expensive upfront costs. People are now leasing cars if they do not have the money to put down on a new car. They pay cheap monthly payments and get a new car every couple of years to lease (or whenever their leasing agreement is up.) Many people have been leasing luxury cars but are now leasing more mainstream and compact cars. However, at the end of the lease you do not own anything and do not have a vehicle to re-sell.
Advantages and Disadvantages
With a purchase, you own the vehicle and can keep it however long you want. With leasing, you have to return at the end of the lease. Loan payments are often more expensive than lease payments since you are paying off the entire purchase and not the vehicle’s depreciation during the time of use. If you do not like your vehicle, you can trade it in or sell it if you purchased it. For leasing, you will be stuck with a high price for breaking your contract. You can use it as many miles as you want but if you wear the vehicle that you purchased, it affects resale value. With leasing, going over mileage can cost you and any damage at the end of your lease will hold you responsible for any extra charges.
At the end of your term with leasing, you can purchase the car or get another brand new car to lease. This is a benefit of leasing, you will always have a new car. But, at the end of the term with purchasing a vehicle, you have no extra payments and you have equity built up to use on your purchase for your next vehicle. Whether you choose leasing or buying – there are benefits to both. If you are transporting your car, an auto shipper from Direct Connect Auto can help you get your new car shipped without hassle.