Leasing vs. buying a vehicle

The decision of whether to buy or lease a vehicle can be very important, and drivers may want to consider all the benefits and disadvantages of both options before making their decision.

Those who feel they cannot afford to put a large amount of money down may be drawn to the idea of leasing a vehicle. Since leased vehicles are under warranty, drivers can also enjoy low maintenance costs.

The downside of car leasing is that monthly payments never stop as long as the vehicle is leased. When a vehicle is purchased, a consumer can eventually pay off his auto loan and continue to use the vehicle with minimal monthly costs. This is not the case for leasing, according to Edmunds.com.

The benefits of leasing therefore largely accrue at the beginning of vehicle ownership, when a driver can get a car without spending a large down payment. In the long run, however, leasing becomes more expensive.

Many drivers, especially those with bad credit history, may also be intimidated by the idea of buying a vehicle because they are unsure if they can obtain financing. Such drivers have the option of applying for a bad credit auto loan to finance their purchase.