The Advantages of Buying a Car Instead of Leasing

Each day, we are bombarded by an array of offers to lease or purchase a vehicle. In most cases, the monthly payment on a leased vehicle is lower than the monthly payment when you purchase that same vehicle. For many people, this may be all that they need to hear to convince them that leasing is in their best interest. However, there are many advantages of buying a vehicle instead.

There Are No Miles Restrictions

When you buy a vehicle, you aren't restricted to driving it 10,000 or 12,000 miles a year. For those who have long commutes to work, like to take long trips or otherwise need to drive on a regular basis, buying may actually save money compared to leasing. This is because you may be required to pay up to 25 cents per mile for each mile driven after you hit your yearly cap.

You Don't Pay for Excess Wear

If you get into an accident driving a leased car, you may be liable for any damages incurred. The same may be true if the interior has food stains or the exterior has scratches on it. When you buy a vehicle, you can damage it as much as you want with few or no consequences. Although its resale value may go down if the car is in poor physical condition, that won't be an issue unless you choose to sell it. In the event that you are ever involved in a car wreck, contact a Dallas car accident lawyer to discuss your options.

Use Your Equity to Pay for Your Next Vehicle

When your car is worth more than what you owe on your loan, you are said to have positive equity. This equity can be used as a down payment toward your next car, truck or SUV. While it may be possible to trade in a leased vehicle, not all leasing companies allow for this. If your car isn't worth much to a dealer in trade, it may be a good idea to donate it to a local charity and take a tax deduction.

Buying Makes More Sense for Long-Term Car Owners

Those who plan to keep their vehicles for more than two or three years should opt to buy instead of lease. When you lease, you pay for the depreciation of the vehicle during the lease period. Then, if you choose to keep it, you take a loan for the amount of the vehicle's fair market value. On average, a lease runs for two to three years while a car loan lasts for five to six years. Therefore, you could be paying for your vehicle for up to nine years before it is paid in full.

If you are in the market for a new car, it may be in your best interest to buy instead of lease. There are many great deals available for those with a wide range of budgets and credit scores. It may even be possible to shop for cars online prior to making any visits to a dealership, which may be ideal for those who don't like dealing with salespeople before they are ready.