Factors to consider while buying or leasing a car

Apr 27 2010 The decision is not an easy one and is very much a function of an individual’s financial situation and his immediate as well as long term requirements and plans. There cannot be one standard answer that can be advocated.
Broadly, those seeking lower monthly outgoings should lease the car and forego some of the benefits associated with purchasing one. Those who do not mind paying more on a monthly basis can purchase a vehicle provided they are clear that they would use the car till it fails to perform. This way they are able to use the money they have had to block for the monthly loan payments for something else once the loan tenure is over.
Other factors such as maintenance of an older vehicle and the opportunity to drive newer models also influence the decision to make an outright purchase.
Since most leases peg the mileage for a three year period beyond which you may have to pay more per mile, it is important to assess your requirement and then decide.
The above variables therefore need to be considered before you make that decision of buying or leasing your car.

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