Some vehicle review journalists on YouTube nowadays offer an opinion meter for whether one should disregard, lease, or purchase a certain vehicle.  This presents some interesting questions. For example, which option should you go for between buying or just leasing the vehicle?

There are several factors that you should consider before deciding whether to lease or purchase a vehicle. Going through the advantages and disadvantages of both options is a great place to start when choosing between the two options.

Leasing

Leasing allows you to use a vehicle without the commitment of having to own it. It’s a lot like renting a vehicle, but in this case, you borrow it for use over an extended duration, such as three, four, or five years. You return the vehicle after the lease period expires, and you also have the option of buying it for a lower amount, usually predetermined in the lease contract.

Pros of leasing

• If you lease a vehicle, you will be required to pay a monthly amount for using the vehicle, and it is usually less than what you would pay as monthly payments if you choose to purchase the vehicle. If the dealer requires a down payment, it is often lower than what you would pay to purchase the car, and thus leasing is the cheaper option.
• Leasing allows you to exchange the vehicle so that you can upgrade to any other preferred models in 2 or 3 years. This is a great option for car fans that would love to have the experience of driving different types of vehicles.
• Leasing a vehicle for shorter durations like two or three years also allows you to avoid the extra repair expenses that might be involved, especially as the vehicle grows older.

Cons of leasing

• Lease agreements usually come with stipulations that may limit you from doing some things with the vehicle. For example, you might want to enjoy some off-road excursions, but doing so may void your lease and lead to additional expenses.
• Some vehicle leasing agreements may have very limited mileage, which is not worth all the money you pay. For example, a lease agreement in which you are allowed to use the vehicle for a maximum of 15,000 miles might be too little, especially for anyone that commutes a lot.
• You might end up paying for additional fees to cover things like damages when you return the vehicle after the lease period expires.

There are other costs involved, such as insurance and out-of-pocket payments, especially if the vehicle is involved in an accident and gets totaled. Those costs may narrow the gap between buying and leasing.

The purchasing option

Buying a vehicle means its ownership is transferred to you. You can buy cash or secure a car loan that you can pay off in monthly installments.

Pros of buying

• You will own the vehicle, which means you can do as you please with it as long as it is within legal limits. Any monthly payments will go towards ensuring that the vehicle is yours at the end of the loan duration.
• Any costs involved in the process will be presented upfront, which eliminates the likelihood of hidden costs.
• You have more options as far as customization and choice compared to leasing, where there are fewer options since the vehicle will not be yours.
• You can sell the vehicle if you wish to do so in the future.

Cons of buying

• The overall costs of owning the vehicle will be higher than leasing.
• It limits your options of trading in for another vehicle.
• Liquidity might be a problem if you are in urgent need of cash because you have to find a buyer first.

Now that we have looked at the pros and cons of each, other factors may sway your decision. Chief amongst them is a personal preference. One person may simply want a means of transport without the commitment of having to own a car, while another may want to enjoy the prestige of owning the vehicle.

Your lifestyle might also have a huge impact on deciding whether to purchase a vehicle or to lease it. For example, one may want to simply drive different sports cars for the experience even if it is for a short period and then they move to the next sports car. Some may simply want to own a particular vehicle.