Ojiako Godfrey
Some people will tell you that the reason you should rent a car is because it is cheaper to buy than to rent. This argument may be true in some cases, but the main ten reasons why renting a car is better than buying one are as follows. If you are still unable to decide, why not take a "should I lease or buy a car quiz" on ClimateRealTalk and find out what it pops up.
Anyways, here are the top 10 reasons why leasing is better than buying:
- Driving standards are more stringent when renting than owning a car, meaning your safety and comfort are more likely to stay intact.
- Leasing never goes out of style. It's less expensive than buying now and could be worth much more later on.
- It's easier to lease a car now than to sell an owned one later on.
- You may end up paying more for insurance than you think.
- If you finance a car loan, it is possible that you could lose your property if you don't make your payments.
- Leasing can be an investment method that helps build wealth while avoiding paying taxes on the full value of the vehicle. It is also easier to put the leasing fees into savings than to make monthly payments on a car that loses value over time.
- Leases are usually shorter than loans, meaning you are less likely to be stuck with payments longer than necessary. This is especially true when you lease a new vehicle as opposed to purchasing a used one.
- Leasing is good for your credit history because the leasing company has to report your payments to all three credit bureaus while there is no reporting on a settled car loan.
- Leasing is better on your pocketbook because it is more likely to allow you to pay only for the vehicle that you need and nothing more.
- A leased vehicle is easier to sell because there are no transfer fees and no hassles of negotiation.
When choosing between renting or buying a car, remember that this decision should be based on whether or not you need the car. You may find that owning a car means you have fewer expenses, but then again you may also find that leasing a car can save you even more money while providing you with all the comfort and safety of your own transportation without having to deal with repairs, insurance, or the possibility of losing the property if payments are not made.
Disadvantages of buying a car
The biggest disadvantage of buying a car is that it is a large purchase so many people need to wait until they have saved up the money to buy one. A second downside is that some people may accumulate more cars than they can afford, putting them at risk of losing their property or defaulting on payments. However, buying a car can be beneficial to some people and it should not be avoided due to the disadvantages.
The disadvantages are listed below:
- a large initial purchase cost
- varying types of cars to choose from
- limited auto insurance coverage
- long term vehicle warranty might not be worth the money spent on it.
