The typical car will lose two-fifths (40%) of its value in the first year alone. This raises the question: why buy? In this article we will discuss the pros and cons of leasing vs. buying and help you decide which is right for you.
A lease is a long-term rental deal, for which you agree to pay a certain amount per month for the duration of the contact.
This not only makes sense when it comes to a purchase that depreciates as soon as it leaves the lot, but also to those who always prefer to be seen in the latest models.
You can feel happy knowing your monthly payments are usually about half of that of a loan. One of the downsides to this arrangement, however, is that no matter how much money you put in to this vehicle every month, you’ll never actually own it.
Another drawback you need to consider when leasing is how many miles you plan on putting on your rental. Most contracts do not allow an excess over a certain amount and you will be charged a per-mile penalty for anything over that limit.
Also keep in mind that any damage the car suffers while in your care will also come out of your pocket.
All in all, you can walk away, however, not having to worry about reselling a vehicle that isn’t worth what you might have paid initially, and instead sign a new contract for the next “best” thing.
When to Buy?
Not all cars depreciate rapidly. Here are 5 recommended vehicles to buy, whose value holds up after the test of time:
- Audi A4 Avant 2.0 TDI 143 SE
- Audi TT 2.0 TDI Quattro
- Citroen C4 Grand Picasso 1.6 HDi SX
- Honda Jazz 1.2 i-VTEC S
Any one of these makes/models would be a smart investment when it comes to buying. They are built to last and hold their value when properly taken care of.
As long as the vehicle you are choosing to buy isn’t going to depreciate rapidly, it could wind up being a very smart investment. Others may want the peace of mind that comes from leasing, because once that contract is up, the apron strings are cut and you could find yourself behind the wheel of a brand new vehicle every 2 or 3 years. If you are purchasing a vehicle you need to ship, Ship A Car Direct can provide you with an iron clad guarantee! Contact us today to learn more – and see how affordable we truly are.