by Emily Hechler 
Leasing a car comes with many perks such as driving a trendy and reliable ride with low monthly costs. However, there are still benefits to purchasing a car, even if you have an auto loan. These include lower long-term costs and complete ownership at the end of a few years. You might be stuck deciding which option is better for you. These facts can help you decide whether to buy or lease a car.
When you lease a car, you drive it during its most reliable years. New cars are more reliable than used cars because they don’t have any wear and tear or other damage yet. The longer you own a car, the more expensive repairs can become. Cars on a lease are often fresh from the manufacturer. Because of this, the car will still be under the factory warranty. A factory warranty usually covers a car for around 3 years or 36,000 miles, whichever comes first. A car lease is usually around two to four years. These timelines go hand in hand. When you purchase a new car, you still have a factory warranty but will be responsible for paying for repairs beyond the timeline of the warranty.
Leasing a car costs less up front. A good rule of thumb is to make a 20% down payment for a new car and a 10% down payment for a used car. Leasing a car usually doesn’t require a down payment. You will have to pay other fees than if you were to buy a car. These fees will likely total significantly less than a down payment and the fees that come with purchasing a car.
You will be limited to a specific number of miles per year when you lease a car. The number of miles you are permitted to drive your car depends on your contract. If you have a long commute or plan a few road trips every year, leasing a car is probably not the better option. Exceeding your mileage allowance can cost hefty fees. On the other hand, if you don’t drive enough, you could be paying for miles that you don’t even drive.
Buying a car can cost less in the long run. When you purchase a car, your pay toward your loan over a certain period of time. After that time, you get to keep your car as long as you want without making monthly payments. After your car lease term is up, you’ll likely have to buy a new car or lease another one. Over time this adds up. If you purchase a car that you plan on keeping for 10 years and pay off your loan in four years, that’s 6 years without loan payments in the future. If you lease car after car for 10 years, you’re continuously making monthly payments and don’t get to keep the car in the end.
Maybe you purchase your car and decide you don’t like it after a couple of years. If you purchased the car, you could trade it in and put that money toward a new car. Unfortunately, you don’t get that luxury with a car lease. At the end of your term, you don’t have a car and don’t get any money back.
If you are looking for a short-term cost-effective solution, leasing a car is likely the better option for you. If you are looking for a long-term cost-effective solution, getting an auto loan to purchase a car is likely the better option. Fortunately, our auto loan application process is easy and fast. Plus, you can get extra coverage for your car through Alltru too. No matter your decision, you can get those keys in your hand in no time.
