Both buying a car or leasing one will have certain financial implications. However, money is not the only criterion to base this decision. Your lifestyle and personal taste will also have a critical role in deciding whether you should finance or rather lease a car? So, let’s find out how to choose between financing and leasing a vehicle.

Deciding Between Financing and Leasing a Vehicle
Whether it comes to either of the two options, choosing from either one depends on your personal preferences, goals, and budget. Trust us, when we say this, both buying as well as leasing the vehicle has its share of benefits. Now, given both of them have adequate benefits, the key to determining how to choose between financing and leasing a vehicle is by understanding which alternative is more ideal for you.

Benefits of Car Leasing
If these benifits apply to you, leasing a car may just be the right option:

• Lower Payouts Every Month
  Typically, the amount of monthly payouts for a leased car is lesser than those of buying a car. Moreover, in leasing, the down payment required is very little. There’s no sales tax to be paid either. However, when you give back the leased car, you might be charged a fee for exceeding the mileage allowance limit or damages, if any.
• Fewer Expenses on Repairs
  During the term of the lease, you are covered by a warranty from the manufacturer. So, this means, if there are any damages, the insurance will take care of it. However, you’ll have to bear charges for auto insurance and the regular maintenance of the vehicle.
• Drive the Latest Model
  With leasing, you have a chance of driving a new vehicle more frequently. Hence, you can always switch to the latest vehicles with improved safety and tech features.
• No Loan Approval Needed
  As far as credit scores are concerned, leasing companies aren’t as rigid as lenders. So, even if your credit score is less, you’ll easily get a car on lease.

Benefits of Buying a   Car
Here are the top advantages of buying a car compared to leasing one:

• Overall Long-term Payments are Lower
  Although financing means higher monthly pay-out, it also indicates that you are building equity for yourself for the times to come, which is for the time you opt for trading it or selling it. Moreover, buying a car and using it for some years after the loan term is over is the most affordable way of owning a car.
• No Restrictions on Maintenance and Mileage
  When you buy a car, it is your own. So, there’s no mandate that you have to maintain it in the best condition or personalize it. You can keep it as desired. There are also no mileage problems since the car is brand new. You can treat it like your own home.