Question

In a well written page explain the pros and cons of leasing vs. buying a car?

Answer 1

Soln. The advantages of leasing a car are listed below -

  1. The amount of money to be paid at a time is reduced with lower monthly payments

2. The warranty protection of car lies in the hands of owner

3. Flexibility to choose new car with time

The disadvantages of leasing a car are listed below -

  1. Some leasing companies fix the mileage units and hence user is bound to use only for fix mileage

2. The leaser should have stable predictable income, so that he or she should be able to pay monthly installments

3. Likely to pay more over time

4. Leaser is bound to maintain the car in proper condition

The advantages of buying a car are listed below -

  1. Ownership of car lies in the hands of buyer and hence he or she is free to customize the vehicle as per their choice

2. No extra end-of-lease charges have to be paid

The disadvantages of buying a car are listed below -

  1. Highly monthly or one time payment has to be paid based on the purchase plan

2. After warranty, buyer has to bear the cost of car maintenance

3. There is less flexibility of reselling and purchase a new model car over the future