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Buying Vs Leasing Essay

500 Words2 Pages

Have you ever wondered what the difference between leasing and buying a car is? Well, the main difference between leasing and buying is that, when you buy a car, you own it and get to keep it as long as you want. With a lease, you don’t own the vehicle, you get to use it but must return it at the end of the lease unless you decide to buy it. There are many differences between leasing and buying.

One of the difference between buying and leasing is the up-front cost. With buying a car,dealerships include the cash price or a down payment, taxes, registration and other fees. When leasing it typically include the first month's payment, a refundable security deposit, a down payment, taxes, registration and other fees. Along with the initial portion …show more content…

When buying your own car, the vehicle is yours to modify or customize as you like. Whereas when leasing, since the lessor wants the vehicle returned in sellable condition, any modifications or custom parts you add will need to be removed before you return the car. If there is any damage, you'll have to pay to have it fixed. Another difference is the monthly payments. If you buy a car the payments are usually higher than lease payments because you're paying off the entire purchase price of the vehicle, plus interest and other finance charges, taxes, and fees. If you lease a car,it’s almost always lower than loan payments because you're paying only for the vehicle's depreciation during the lease term, also interest charges (rent charges), taxes, and fees.
People have many different opinions on whether to buy or lease. In an article found on www.cnbc.com written by Landon Downdy it said “Millennial car buyers are more likely to lease a car than Generation X and the baby boomers. And millennials are leasing more than ever.
Leasing accounted for nearly 29 percent of all new car purchases by millennials in 2015. That beats the average lease penetration rate of 26.7 percent for the entire U.S. population, and is a 46 percent increase in leasing by millennials over the past five years, according to a study by automotive information website

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