Chapter 6 Article.docx - Dalton Elwood Mr Budach 25 October 2019 Pros and Cons of Leasing vs Buying a Car Leasing and buying cars are two very similar

Chapter 6 Article.docx - Dalton Elwood Mr Budach 25 October...

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Dalton Elwood Mr. Budach 25 October 2019 Pros and Cons of Leasing vs. Buying a Car Leasing and buying cars are two very similar things but are different in the long run. “Leasing a car is basically renting a car. You’ll still make monthly payments, but it’s not a loan, so the money isn’t technically borrowed, but paid for month-to-month usage. You can keep driving the car for as long as the lease is active.” Buying a car traditionally involves borrowing money in the form of an auto loan, where you’ll make payments with interest over a certain period of time. When you’ve paid off the loan, you get to call the car your own. Unless, of course, you are loaded and are able to pay the car off in full right when you buy it. The pros of buying a car are as follows: you get to own your car, buying is cheaper (in the long run), and your car is yours to do what you wish. The pros of leasing are lower monthly payments, you get to drive a new car every couple of years, and, lastly, pricing is set, and tax
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Unformatted text preview: breaks are possible. The cons of buying a car are higher monthly and down payments, dealing with depreciation, and the maintenance costs can be a burden. The cons of leasing a car are the fact that leasing is more expensive in the long run, several rules and restrictions apply on a lease, and you don’t ever end up owning the car. There are many positives and negatives or both buying and leasing but, at the end of the day, it comes down to personal preference and necessity. Determine how much you drive each month to avoid excess mileage fees attached to leases. Buying may be the better option if you’re the behind the wheel a lot; leasing may be more feasible if your commute is short. Also, If you prefer to keep one vehicle for long periods of time, or if you care about equity and resale value, buy. If you like the change of a new vehicle every so often, lease. It is all up to you in the end, there is no set way to obtain the car you need....
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  • Fall '19
  • Mark Budach

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