If you need a vehicle this year, then you have two choices. One is to buy your own car, and two, lease a car instead. While renting a car has its own advantages, buying also has its set of perks. Knowing the advantages and drawbacks of each option is the first step to take before making a final decision.

When it comes to a car purchase, you have the option to buy a used vehicle or a brand-new one from the many reputable Holden car dealers. You get to enjoy significant savings if you can pay for the car in full or build equity for each payment you make. The car is yours alone, along with all the responsibilities and recurring costs. As for a car lease, you get to pay lower monthly payments. You can acquire a new one after every few years, but then, you’re more likely to pay for a vehicle that will never be yours.

Aside from knowing each perk and drawback of both options, there are other considerations to think about. Wonder what those factors are? Four of them are as follows:

Your personal preference

If you’re one who quickly gets tired of an item, then leasing is ideal. You get to change cars every after a few years. You can have a car that is a newer model, has more safety features, and can match your current lifestyle. However, one should take note that you may be subjected to penalties if you try to get out of a lease before the due date. If you want more freedom to trade or sell your car, then making a car purchase can be a more convenient option.

A down payment that you can afford

A car lease and purchase have different ranges when it comes to the upfront fees and sales tax. If you badly need a car but can only afford a low down payment, then leasing a vehicle will make better sense. On the other hand, those who can save a higher down payment should consider buying their own car instead.

Monthly payments that you can manage

Buying a car means that you will need to pay higher monthly fees. This is if you have acquired a car loan to make the purchase. For those with a higher cash flow each month and still can afford higher monthly car payments, then buying can be a better choice for them. Otherwise, consider leasing instead.

Miles that you usually drive

Driving in the curve

A car’s value depreciates faster when you drive more miles each year. This means that if you typically drive longer miles, then leasing can be a bad idea. There is a mileage limit every year. If you exceed the said limit, you will need to pay for every single extra mile. You can choose to negotiate the mileage limit or buy a car instead so that you won’t have to worry about exceeding any limit.

When choosing between leasing and making a car purchase, make sure to check out this list. Consider your preference, the amount you can afford for the monthly and upfront fees as well as mileage you think you can consume each year. The best choice will depend on these four factors, along with your income stability. Doing your research can be of big help when it comes to deciding between a car purchase or lease.