Owning a car or leasing it

Jul 6 2010 If you are faced with a situation where you desire a particular car model and are not able to afford it either due to the price or the unfriendly car finance terms, you will face a quandary. That is whether you should go for a car that is affordable and well within your means or leasing that unaffordable vehicle for that immediate feeling of gratification and the fact that the monthly payout does not stretch your resources unduly.
Though there are pros and cons to both approaches and ultimately boils down to an individual’s requirement and mental makeup as to what he seeks in a vehicle, the consensus broadly seems to be against leasing vehicles due to the following reasons:
a) The leased vehicle will never be your own and you will also be required to make a down payment.
b) If in the interim period of the lease, you do get the opportunity of owning a car, you will not be able to sell this leased car and utilise the proceeds.
c) If the option of purchasing the leased car is made available to you, it will be at a much higher cost as it will also include maintenance as well as any wear and tear expenses.

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