Gone are the days where buyers had to put all the money at one go and buy a car. With leasing becoming more common and comfortable most of them have an option to give a sticker amount the beginning and pay the remaining amount as installments. Leasing also takes the depreciation into consideration along with the interest and the fee. Leasing also has some advantages over financing a car. Let us take a look at some pros and cons of financing vs. leasing a vehicle.

Reduced Monthly Payments
When compared to buying the car, when leased the lessee only has to pay the difference between the cap price of the car and the depreciated value after the tenure making the monthly payments lesser than the ones involved in financing a car in installments. However, it isn’t wise to judge the installments without taking into consideration the monthly budget. Leasing a car helps in going for a better car with better options when put against buying a car. This is one of the most crucial points to consider when noting the pros and cons of financing vs. leasing a vehicle.

Latest Technology
For a car to have the latest features like driver assistance and cruise control, one needs to own the latest cars for reaping the maximum benefits. For someone who is looking to own a new car with the latest technology but falling short of some amount, leasing obviously is the most practical option for a buyer as he can avoid the depreciation cost and have reduced monthly payments.

Leasing also helps the buyer to go for a car that offers better fuel economy than similar models that were a few years older.

Maintenance and Warranty
If the car is not overused and used normally the buyer need not worry about the warranty of the car since the seller will cover it for whatever period the car has been leased. Since the terms of the lease are either two or three years, the dealer will not have any issues providing a warranty. Another big advantage of leasing a car is that the buyer doesn’t need to worry about the expensive repair costs involved in owning a car since the dealer takes care of it all if the damages are genuine.

Trade-In
When the tenure is over, the lessee simply has to go the leaser and give the car and settle for any final payment, including excess miles and any excess wear. Most of the time, the lessee will drive away with a new car, making it a very comfortable and hassle-free procedure. One can simply avoid the pain of selling their car and arguing over the price when it comes to financing. Lease cars offer a lot of flexibility to the lessee.

Sales Tax
Depending on the location, leasing a car can save a tremendous amount of money involved in paying the sales tax. There are some jurisdictions wherein the tax involved is only the amount paid as the token fee and the monthly installment as regard to the tax paid on the entire cap cost of the car, making a huge difference. Moreover, the down payment involved in the form of sticker price is very low compared to financing a new car.

Considering these pros and cons of financing vs. leasing a vehicle becomes integral when it comes to making a decision.