Leasing vs Buying A Used Car: Which Is A Better Option?
Driving your dream car was never so easy until options like leasing a car or buying used cars online came into light.
As the prices of the vehicles continue to climb, there is no other option left for people than to lease a car or buy a used car. Around one third of car sales accounts leasing and buying used cars. Purchasing a new car involves major expenses. From interest on loans to depreciation value, there is a lot that needs to be considered while buying a new car.
In San Jose, there are several pros and cons of leasing and buying a car. If you are curious about knowing what is the better option, this article will provide you with the best solution.
Leasing vs Purchasing a Used Car
Leasing a car is the same as financing it in many ways whereas buying a used car is more of an investment when you need a replacement value. Here are a few differences between the two.
- Leasing a car means having caps on kilometers. When you lease a car for a month, you are bound with the kilometers. You can not exceed the set kilometers for the car and if you do, you are penalized with additional charges. And talking about used cars online, there are no such limitations. You can drive the car as much as you want because you own that car.
- When you plan a trip within your purchased car, you do not have to actually go as per the schedule. You are a free bird. But for a car on lease mileage overage fees can add up faster than you imagine. A cross country road trip will cost you much more in a car on lease than buying used cars.
- Leasing a car demands no heavy maintenance costs, down payments and loans which is a plus point. But so is the case with a used car in your budget. When you buy a used car online, you do not have to worry much about the added costs. Even the case with a leased car is that you need to return the car in its original condition. But when the car is yours, you do not have to stress about returning it or maintaining the condition as it is. Of course maintenance is important for your own good but there is no such pressure.
- Financing happens in both the cases. The only major difference is when you lease a car you are renting it for a few years. For such a short span of time you are financing the portion of the car covered by your lease term. In the neither you have any equity in the car or a value to apply as a down payment on your next car. Whereas while shopping for used cars online or offline, in the end the car belongs to you. The seller will transfer the title to you. Apart from the basic ownership expenses you will not have to think about other car payments.
- You get to add as many accessories as you want in your car but not in a leased car. When you lease a car, you have to first inform the company and get an email approval. Also if there are any damages in the car due to installation it is you who has to bear the cost.
Buying or leasing a car is a personal choice. There is no one size fits all case here. The purchaser needs to be really careful and pay attention to all the pros and cons related to the car.
Depending on your budget, lifestyle, mileage needs and credit history you can go for used cars by owner or a car on rent. In case you are looking for used cars online in San Jose, comment down you must go for a verified seller only.