Buying or Leasing

Aug 9 2010 The pros and cons of both buying and leasing are to be viewed by individuals taking into account their own financial position and there is no general advice that can be given.
When you lease a vehicle, the maintenance of the car does not become a headache and as long as you have maintained or kept under the mileage limit and the car is in good running condition, you can return the car and take another one for a new lease term. Some lessors will even allow you to possess the car after paying some cash. If your credit score and rating is good, you need not pay a high monthly payment and will get the benefit there too. Hence you get the benefit of driving away with a car of your choice making a monthly payment that is comfortable for you.
When you buy a vehicle, the car does belong to you and if you buy it outright, there is obviously no monthly payment to be made. There are also no mileage restrictions, but the maintenance costs have to be borne by you and may also not be able to dispose off the car as and when wish. If you go for car finance, then you need to take care of the monthly repayments and that is generally higher than lease monthly payouts.

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