A question that often plagues those driving a car is whether to buy one or lease one. The dilemma is resolved by a comparison of the two options discussed herewith.
While buying the car you own it, but with leasing you can use the car but have to return it at the end of the lease, unless you wish to buy the vehicle.
For buying a car upfront costs include down payment or cash price to purchase the car along with registration, taxes, etc., and monthly payments include loan payments along with interest. On the other hand, with leasing costs include a first month payment, a deposit fee that is refundable, acquisition and registration fees, etc., followed by monthly payments which are the depreciation cost which is much lower than loan payments plus ret charges etc.
If you want a new car then the owned car will have to be sold or traded in with the new but a leased car can be returned at end of lease with minimal end of lease cost.
The owned car value will depreciate, but the cash value will be of the owner itself while future value does not affect a leased car owner. On the negative side, he has no equity in the car either.
Owned car trade in value might be affected by the wear and tear but other than the owner need not worry. However for leased cars, the contract holds the person responsible for any tree excessive damage and wear and tear.
On your own vehicle you can make any number of customizations as required, but a leased vehicle doesn’t allow that option since the vehicle needs to be returned.
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