Friday, May 4, 2012

BUYING OR LEASING A CAR

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In this day and age people need to have a car for transportation purposes. Often, they don’t know the best way to get the car. However, there are two different choices for getting a car. The first option is purchasing a car which can be owned, and the second one is leasing a car through a company. Each choice has an effect on the budget. It is better to buy a car than to lease one.


Leasing a car is not a bad idea for individuals who own a business because it is considered a business expense and can be written off of there taxies. Unfortunately, not all people have their own business, but in fact work for companies, so leasing a car is not the best choice for them.


When a person leases a car it will never become his own, even though he continues the payments every month, and he won’t have the feeling of “owning a car”.


A leased car is always new, so the person who leases it doesn’t have many mechanical problems. In addition, the new car is more comfortable than a used car, but the person doesn’t have the option of leasing a used car and making lower payments, because the company doesn’t want to have too many mechanical problems with the used cars that the customer leased or buys.


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The only reason of the success for leasing companies is because they are making a lot of profit from the people whom are leasing the new cars.


The mileage on the leased car is limited, therefore the lessee will be charged for the extra miles put on the car. And sometimes the cost of the lease may go higher if the company feels that the individual is not a very responsible lessee.


However, buying a car is the better way for the people who don’t have their own business, and in this time most of the people work with companies and don’t have their own business, so they find buying a car is the best way for them.


If a person buys a car, he has the option to chose whether they want to buy a new car or used car. The person still must pay the payments each month, but after he is done with making the payment the car will be his to own, so he can do anything he wants with it. Also the person can put as much mileage as he want and nobody will charge him for anything extra. In addition to that the person who has this car is not overly cautious about it like when it is leased.


After the person is done making the payment he can sell the car to someone else and get most of the money back, and then he can buy another car by these money without having to go to a company.


Buying the car gives the individual feeling of ownership, the car becomes a property after all the payments have been made. If the car gets damaged for some reason, the owner doesn’t have to answer the company, he can just fix it and that is the end of the case.


After comparing both options, it’s obvious that it’s cheaper for a person to buy a car than to lease the car. Either way the person who want to loan or buy a car has to make payments, and either way he has to pay for the insurance, so it’s will be a lot better to own the car after making these payments than it is to give the car back. The person can see the difference between each way of having a car, and the most efficient is buying it.





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