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The Difference Between Leasing and Buying a Car

the difference between leasing and buying a car

When someone is looking for a car, the first thing they need to decide is whether they want to buy one or lease one. Both options have their advantages but understanding the main difference between the two will help the person interested to make a decision right for their need. So, here you can learn more about the difference between leasing and buying a car.

Ownership

The main difference between leasing and buying is ownership. While buying the car you have the freedom to do whatever you want to with it. A car owner has the right to modify it, sell it or keep it. By car leasing, you don’t own the car in simple words you are renting it for a set period of time. The leasing periods depend on the contract, but they can usually last between two and three years. After that time, you have the option to return it back to the leasing company or purchase it so you can now own it.

Monthly Payments

Moreover, when it comes to buying a car, you usually pay for the entire cost of the car, while when leasing, the monthly payments will typically be lower, and you only pay for a portion of the car’s value.

Mileage Restrictions

Leasing a car can sometimes have mileage restrictions. There is a certain number of miles you are allowed to drive each year that is set from the beginning of the agreement. That can be a disadvantage for many, but it can be extremely beneficial to those who don’t travel long distances with their car. When you own your own car, of course, there aren’t any restrictions but again people with short distance everyday schedules and who don’t want the responsibility of owning a car can find this as a huge benefit.

Maintenance and Repairs

When leasing a car, the dealership is responsible for maintenance and repairs during the period you lease the car. This means that whenever something is wrong with the car, the leasing company is responsible to repair it and take care of it, even financially. By buying your own car, the responsibility of maintaining it falls on you and you have to find your own mechanic to maintain your car. This can be an advantage for some and a disadvantage for others. Some people need to have certain mechanics and people whom they trust to take care of their can no matter the cost.

Resale Value

When buying a car, there is a possibility that you will have to sell it or trade it in the future but as the years pass the value of the car is lost. When you own the car that can be a problem because usually, it will be difficult to sell the car depending on its real value. On the other hand, people who lease a car, don’t have to worry about the value of the car after a few years, since they don’t own it and they will have to return it to the dealership after the end of the contract. If you decide to purchase the car after its leasing time, then the value must be considered to the cost.

Both car leasing and car purchasing car can be beneficial, while leasing can come with a few limitations and buying a car can come with many responsibilities. So, it is always better to understand what is better for the person’s needs and make the decision that is most appropriate for them. Make sure to check out Car Leasing Cyprus and learn more information.