Buying a car means owning the vehicle and having the freedom to customize it as you please. You also have the option to sell it whenever you want. However, buying a car also means you are responsible for all maintenance and repairs, and the car’s value will depreciate over time. Additionally, the initial cost of buying a car can be pretty high, particularly if you are financing it. If you’re still confused about your decision, Here’s a helpful article about leasing vs buying a car in Singapore.
Leasing a car means that you are renting the car for a set period, usually between two and four years. During this time, you are only responsible for paying the monthly lease payments, which are typically lower than car loan payments. Also, you can trade the car for a newer model at the end of the lease. However, leasing a car also comes with some downsides. For one, you are not allowed to customize the car and are also responsible for any damage or excessive wear and tear at the end of the lease. If you decide to end the lease early, you may be subject to early termination fees.
What should you do – buy or lease?
Whether you should buy or lease a car depends on your circumstances. If you like having the latest and greatest car, and you don’t mind paying a bit more for convenience, then leasing might be the right choice. However, if you like to customize your car and want to own it outright, then buying might be the better option.
Another factor to consider is the long-term cost of ownership. While leasing may seem the more affordable option in the short term, it can cost you more in the long run. This is because you will never actually own the car and have to keep leasing or buying new cars every few years.
On the other hand, buying a car may have a higher initial cost, but you will eventually own the car outright and will not have to continue making payments.
It would help if you also consider your driving habits. If you like to put a lot of miles on your car, then leasing might not be the best option. Many leases have mileage limits; if you go over them, you will be charged extra fees.