We live in a time when people prefer to lease things than to buy them. It’s not hard to see why this is when you consider the large number of rental agencies available, offering goods and services of many different types. However, when it comes to things like cars, it is always more sensible to buy them than to lease them. Why buying a car makes more financial sense than leasing is a crucial perspective that can save you money in the long run. Buying a car means it is all yours, and nobody can take it away from you. It also means that any money you put into it you can get back if you decide to sell. Read on to find out more about the financial benefits of purchasing a vehicle rather than leasing one.
Use Finance
Not everybody can afford to buy a car brand new, which is why many people choose to lease. However, leasing isn’t your only option. Did you know that you can use finance to break down the cost of your car into more affordable monthly installments? The experts from Summit GM make clear that if you plan on using finance, you should put down as large a down payment as you can afford. The larger your initial down payment is, the less your monthly repayments will be. Most car dealers have free finance calculators you can use to work out how much you will have to repay to them each month if you buy a car on finance.
Long-Term Ownership
When you buy a car, you benefit from long-term ownership. With a lease, you only get to use the car for the period specified in your rental agreement. Also worth noting is that under some circumstances, rental agencies can recall vehicles. The only time you have to worry about your car being repossessed when you own it is if you have a finance agreement out on it and you have not made your repayments on time. If you fail to make repayments, the company you have borrowed money from to finance your car will take it back. You should also know that if you try to hide your vehicle, which many people do when they learn repossession orders have been placed, debt collectors may be able to seize other property, i.e., belongings worth the value of the car.
Mileage Restrictions
Did you know that when you rent a car, the company you rent it from is very likely to put mileage restrictions on it? Mileage restrictions restrict the amount of mileage you are able to put on the car, which means you won’t be able to use it as freely as you would if you owned it. If you own a car, you can drive it as much as you want. Something worth noting is that some car finance providers restrict the amount of mileage that people who have finance agreements with them are able to use. If you are buying a car on finance, find out if there are any restrictions on how often you can use your vehicle. A black box can limit how far you are able to travel, which can detract from the fun of owning a car. Something to note is that if you lease a car and exceed the mileage the company you purchased it from set, then you can get into a lot of trouble, may have to pay a premium on top of your payments, and could even lose the vehicle.
Resale Value
When you own a car, you can actually benefit from its resale value. If a car suddenly becomes valuable, which it may do if it is a vintage or older model of car, then you will be able to sell it and make a profit. You won’t have to worry about giving the car back to the agency you have rented it from, because it will belong to you. If you are going to sell your car, make sure you sell it through a reliable auto market. Make sure that any potential buyers verify their identity before you show them it. This is because there has, sadly, been a rise in auto thefts. It is not unusual to hear of people being robbed of their cars after arranging to meet buyers they have met on the internet. Ensure if you meet anyone to sell your car, that you do it in a wide open, public space. Do not take any chances.
Make Modifications
When you own a car, you don’t have to worry about holding back on any modifications or upgrades that you want to make. You will be able to do anything you want to your car because it belongs to you. You can either make modifications or upgrades yourself, or you can pay a professional to do them for you. Modifying your car allows you to get more out of owning it. Even small customizations can make your car a lot more special and unique. Do not make the mistake of modifying a car you have leased, however. You will likely have to pay to reverse all modifications, not to mention pay a premium on top of damaging the vehicle.
Save Money
You can save a lot of money by buying a car over leasing one. When you lease a car, you often have to sign an excess agreement, which says that if you damage your car, you have to pay a fixed sum to make any repairs. Excess payments can be extortionate at times. Buying a car means any payments you make towards your car are investments in the future, whereas when you lease a car, you will inevitably have to give it back, so you are just throwing money away. Make sure that if you do buy a car, you do your research and find the best one you can. A good way to find out what a car is like is to read reviews of it, which you can do for free online.
Buying a car makes much more sense than leasing one does. If you plan on buying yourself a car, shop around and get a good deal. Use the guidance given here to do that. Remember that if you want to make monthly payments towards a car, finance is a better option than leasing.
