Note From Kalen: Do your own research before deciding to lease or buy a car. Contrary to popular belief, there are times where leasing makes sense. Do what’s best for you.

If you’ve been dreaming of having a car, you need to know the various options by which you can get one. While a lot of drivers choose to buy and finance their cars, you can always turn to car leasing, especially if you don’t have the money to complete the purchase. Many drivers believe that car leasing is one of the best ways you can drive home your new car.

In this article, you can learn more about how personal car leasing works and what the benefits are and challenges that you can expect from it.

Benefits of Leasing a Vehicle

Unlike buying a new vehicle, you don’t need to pay the whole purchase price. For example, if you lease a vehicle that costs £30,000 for three years, and its depreciated value amounts to £20,000, you will only have to pay the difference for the lease payment. Compared to buying the car, you can save a lot of money if you opt for an auto lease instead.

Also, you don’t have to get tied to the same old car. You can change the car model after you complete the term. If you buy a car through financing and you chose to avail of a five-year plan, you will be stuck with the same old car unless you trade it in for a new model. Through personal car deals, you can get more for your money.

Drawbacks of Leasing a Vehicle

If you want to own a vehicle one day, then leasing a vehicle might not be the best option for you. Think of it like renting a house versus paying a mortgage. If you choose to avail of a mortgage, once you complete the payment, the house will be transferred to your name. However, if you only decide to rent a place, you won’t end up owning the place one day.

Another disadvantage of leasing a car is the mileage restriction. If you aim to drive more than 12,000 miles a year, you will have to settle high penalties. The mileage penalty differs depending on the car leasing company.

Also, if you opt for personal car lease deals, you need to make sure that you will take good care of the leased vehicle. Otherwise, if it gets damaged in any way, you will also have to pay high penalties.

Which Option Works Best for You?

You need to study your options carefully. Take note of the pros and cons if you buy or lease a vehicle. Outline your needs and wants too. Do you need more mileage? Do you have enough budget to purchase the vehicle? Do you want to drive a car that’s beyond your price range? Does driving a new car every 3 to 5 years sound like a good deal to you?

Whatever option you end up choosing, be sure to drive carefully and to settle your monthly payments to avoid incurring costly penalties. Also, don’t forget to avail of an insurance plan, so you feel more at ease while you drive around.