While owning a car or an SUV is delightful, new models often tempt you to consider buying them. Having said that, purchasing a car or an SUV is a significant expense, especially if you’re buying the latest model. But that’s where leasing comes to the rescue.

Buying or leasing depends on your requirements and several other factors. Here are the top pros and cons of leasing and financing cars to help you decide which one to opt for:

Advantages of financing a car
While trying to decide which one is better – leasing or financing a car, here are some advantages and downsides of financing a car:

• You can customize it:  Owning a vehicle allows you to alter the looks or change parts according to your preferences.
• You can sell it anytime:  Once you clear the installments, you can sell the vehicle if you wish to.
• No mileage limitations:  You can travel as many miles as you wish to when you own a vehicle with no statements and mileage limitations.
• Saves more money in the long run:  When you finance a car, you pay just for the given time frame, and there are no more installments to be made after the term is completed.

Advantages of leasing a car

• No or low down payment : A rented vehicle frequently doesn’t require any up-front installment, and if it does require an up-front installment, it’s low.
• Warranty : Leased vehicles are secured by a guarantee that incorporates free oil changes and other support costs.
• Lower monthly payments : Since you don’t own the vehicle, the rent sum will be lower than EMIs.
• No depreciation costs : Depreciation costs don’t concern you either as you’re not the owner.

Disadvantages of financing a car
When trying to decide which one is a better option – leasing or financing a car, you should consider the following cons of financing:

• Repair costs after the warranty period : Buying a vehicle accompanies a guarantee that covers fixed costs, but when the guarantee lapses, you need to shell out cash from your pocket for fixes and support.
• Higher monthly payments : Paying EMIs for the total cost of the vehicle means higher payments as compared to renting.
• Depreciation costs : Depending upon the brand, the model, and its highlights, the estimation of your vehicle will diminish due to wear tear over time.

Disadvantages of leasing a car
In the debate of which option is better – leasing or financing a car, here are some of the downsides of leasing:

• Includes additional costs : You will be paying a sum that incorporates numerous charges and mileage penalties, and it can also incorporate security and permit expenses.
• Additional fees and penalties : When renting a vehicle, the expenses go up by early rent end charges, higher protection premiums, and the cost of over-the-top mileage.
• Dual leasing expenses : If you rent/lease more than one vehicle in turn, your scheduled installments bend over and continue for quite a while.