Most car dealerships now offer two options when seeking out a new vehicle: buying or leasing. Though leasing may result in slightly lower payments, there are many drawbacks. Mileage restrictions, ride sharing restrictions and lack of equity are just a few caveats to leasing. In contrast, buying a car offers a variety of benefits and, depending on your situation, may be a better fit for your lifestyle.
Benefits of Buying a Vehicle
Offering a variety of benefits, the greatest advantage to buying a car is that you will ultimately own it. The standard process involved with buying a car includes financing and monthly payments. With each monthly payment you own more equity in the car, eventually owning the car completely. There are also several additional benefits to buying a vehicle.
Flexible Credit Worthiness
Available to consumers with both good and bad credit, buying a car does not require a perfect credit score and credit history. Consumers with bad credit can generally obtain car financing easily. While interest rates may be higher, it is still usually easier to obtain a car loan than a car lease with bad credit.
No Mileage Restrictions
When a car is bought there are often no mileage restrictions. With the freedom to put as many miles as you want on your new vehicle, you never have to worry about going over a mileage restriction and having to pay extra. For rural or suburban car buyers, who must travel long distances regularly, buying a car is necessary.
Monthly Payments End
When purchasing a new vehicle, a monthly payment is calculated and assigned for a set number of months. Once the monthly payments end the purchaser owns the vehicle. With no additional monthly payments, only fuel, insurance and maintenance costs are required to maintain an owned vehicle. If you’re the type of car buyer that prefers investing in a vehicle and driving it for a long period of time, buying is the ideal method for you.
No Extra Fees
When you buy a car, it is up to you if you’d like to customize it. With various customization options and possible additions, car modification is a popular hobby. Often adding value, car modifications can significantly increase the potential sale price of a vehicle. Offering no restriction on customization, buying a car is necessary for consumers who enjoy adding and redesigning different aspects of their vehicles.
No Ride Sharing Restrictions
If you’re an Uber or Lyft driver, or you would like to be one, buying a car is the best option. Often accompanied by little to no ride sharing restrictions, buying a vehicle is necessary if you’d like to use your vehicle for some type of work travel. With no restrictions to worry about, your new car can be used to participate in a variety of travel-related employment opportunities.
Depending on whether you buy a car outright or acquire financing, buying a car often results in less insurance. In contrast, leasing companies almost universally require GAP insurance. Ensuring a car will be covered if totaled or stolen, GAP insurance is an added fee involved with leasing a car. Avoiding cumbersome amounts of insurance coverage, a car that is bought is easier to insure.
Largely dependent on your situation and needs, buying a car is often the best option. Offering several benefits, including less restrictions, flexible credit, no extra fees and no added insurance coverage, there are many incentives to buying a car. Weigh the costs and benefits of buying a car, combined with your credit history and lifestyle, to determine if buying a car is the best option for you.