Buying VS Leasing a Car
Buying A Car
Texans worship automobiles; you will discover multiple dealers for any new car make and model of Domestic or Foreign car in Houston, as well as used or “previously owned” in Texas phrasing. Additionally, you can access various web sites and buy your car online. Once you make your decision and negotiate your terms you will need your Texas Driving License, Social Security Number, vehicle insurance, and most importantly credit or a car loan. Unless you can pay cash you should organize your personal credit before embarking upon the purchase of a car. Assuming that you have organized a car loan, as well as insurance, you can literally drive your new car home that day.
When purchasing a car in the United States is one of the few times it is acceptable to negotiate price, and the salesman will expect this. Do your research to find out what you should and are willing to pay and shop around until you find the best price.
Advantages of buying a car:
- Pride of ownership
- Car ownership is more economical in the long run – unless you buy and trade-in every few years
- No penalty for driving excessively
- Increased flexibility – you can sell the car whenever you please
Disadvantages of buying a car:
- Higher down payment is generally required
- Higher monthly payments
- You are responsible for maintenance costs once the warranty expires
- Trade-in or selling hassles when you are ready for something new
- More of your ready cash is tied up in a car, which depreciates, rather than an investment that appreciates in value
Leasing A Car
If you are not going to be here long, you may want to lease a car instead of purchasing one. This will save you the hassle of selling the car, obtaining the loan, and potentially losing money in the sale. Leasing a car allows you to drive a nice vehicle for less money each month and with a lower down payment.
It is acceptable to negotiate the down payment and monthly costs of leasing a car. Also, make sure you are happy with the specific lease terms such as the annual mileage allowance.
Advantages of leasing a car:
- Lower down payment
- Lower monthly payments
- You can drive a better car for less money each month
- Lower repair costs (with a three-year lease, the factory warranty covers most repairs)
- You can more easily drive a new car every two or three years
- No trade-in hassles as the end of a lease
- You pay sales tax only on the portion of sales tax you finance
Disadvantages of leasing a car:
- You don’t own the car at the end of the lease
- Your mileage is limited to a set amount and excess miles are paid for at the end of the lease
- Lease contracts are confusing
- Leasing is more expensive in the long run (as opposed to buying and driving it until the wheels fall off)
- Wear-and-tear charges can add up (paid at the end of the lease)
- It is costly to terminate a lease early if your driving needs change
Tags: Buying a car, Buying versus Leasing a car, Buying vs Leasing a car, Car, Leasing a car, Mckenzie Drake, Suzanne Carpenter
