If you have an interest in car sales training, you will find yourself helping customers make the decision between buying and leasing. Perhaps they don’t have long-term plans to own a car—maybe they’re going to move countries in a year, or go to a city where they won’t need transportation. Or, maybe they’re just looking for a way to own a car in the cheapest way possible. In these cases, you might determine that a lease is the way to go. Upfront car costs are expensive, this is true, however what many may not know is that the hidden fees of leasing can sometimes make buying a vehicle the cheaper and more worthwhile option.
If your full intent is to have a car for more than a few years, buying is most definitely your better option. With buying, when your car loan runs out, you own the car and have the ability to alter it in any way, such as taking it to an auto technician to paint, change the suspension or change the motor. Buying also doesn’t come with mileage restrictions, unlike leasing (the restriction is usually about 20,000 to 24,000 km/year). This means you are free to take your car on a road trip to the Yukon if you wish, with no worries about paying extra mileage fees. If you decide you no longer need the car, you are free to sell it at your own price, which can return some of the money you used to buy the vehicle in the first place. However, buyers should be aware that depreciation typically causes your vehicle to be worth less than what you bought it for.
With leasing, you’re looking at lower monthly payments and the ability to change the car you own every few years if you wish. This means you can drive the latest vehicles and enjoy all the new vehicle technologies without paying an upfront cost. Leasing also usually comes with a warranty for auto mechanic repairs throughout the duration of your lease. If you are a business owner, you can receive a tax credit on the cost of leasing the vehicle for business purposes.
Leasing for over four or five years does end up being more expensive than buying your own vehicle. Another disadvantage of leasing is the fact that you may get stuck in a contract you wish to get out of. The fees for breaking a contract are often very high, and so are the fees for wear and tear if you happen to dent or scratch the vehicle.
In the long-term, buying a car is the cheaper option. You have the ability to sell if you don’t wish to own the vehicle, and you are not stuck paying monthly fees. If you only wish to have a car for a few years, then leasing is the best option—you can drive the newest vehicles and not be stuck paying the full price.