What Are the Advantages of Owning vs. Renting (Leasing) A Car

If you’re looking to get into a new vehicle and aren’t sure whether you should buy or lease, you’re not alone. It’s a big decision, and each route has its own advantages. When and how you spend money on your car is the main factor to consider, but there are other important things to keep in mind as you browse your options. How you prioritize novelty, control over your car, and what maintenance you’re willing to take responsibility for matter as well.

When deciding to buy or lease a car, you should think seriously about your personality and your financial priorities. Drivers who don’t travel much or have much interest in maintaining their vehicle may be much happier in a lease than facing major mechanical trouble (that may leave the car not running) down the line after neglecting basic maintenance on a car they owned. Conversely, those willing to keep up with the car’s needs so they can travel freely will likely be more content to own their vehicles. Read on for a simple breakdown of the advantages of owning versus leasing to see what sounds right for you.

Ownership

Having full legal ownership of your own car has a number of benefits, namely saving you money month to month while giving you more control over your vehicle. The only monthly expense associated with a vehicle that’s owned outright is insurance. Not having a car payment every month can make a big difference. Just think about what putting the budget for a car payment into a savings account every month could do!

Owning your car also gives you freedom. Certain leasing agreements have restrictions on how far you’re able to travel. When your car is yours, you can drive it as far as it’ll take you. You can also drive it as long as you’d like, and don’t have to worry about returning a car you’ve grown attached to. You’re free to customize your car however you want. If you need a ride that looks as unique as you are, owning your car leaves you free rein to personalize as you please.

No leasing agreement also means you don’t have an obligation to anyone to maintain your car in any particular fashion. For example, if you’re someone with an active lifestyle who likes to go on off-road drives, owning your vehicle means you don’t have to worry if your car gets a new scratch or dent going through the brush. Drivers with children or dogs, or who just really enjoy the beach and all the sand it brings won’t have to fuss about a perfectly maintained interior.

The cost of maintaining your car will be entirely up to you, but that can have some unexpected financial upsides when it comes to day-to-day damages. For people in a tighter financial position, the ability to overlook things like harmless cosmetic damage can be a helpful bit of breathing room. While you should never neglect mechanical problems or structural damage, the ability to ignore a small dent or a blown speaker can save some needed cash in tight times.

Renting/Leasing

Leasing a car is similar to renting a house, and has many similar benefits. When you rent a home, you pay monthly to live in a house and the owner of the home is expected to maintain the property. Most leasing agreements hold the leasing agent (usually a dealership) responsible for regular maintenance on the car, meaning you won’t need to worry about things like oil changes.

Your car will likely also be covered by a company warranty, meaning expensive repairs if the car suffers mechanical troubles won’t be your problem. While the health of your car should always concern you while you’re driving it, the long-term health of leased vehicles doesn’t necessarily have to be your priority.

Leasing a car can also be an exciting way to frequently update your vehicle or try models you wouldn’t necessarily commit to for the long term. If having a new car is a priority for you, leasing allows you to get into a new vehicle relatively often. If you have an interest in exotic or unique vehicles, leasing can also be a smart way to drive them without the concerns of financing specialty repairs or parts later on. This can also apply to cars that aren’t particularly exotic, but that are notorious for needing major repairs after a certain age or mileage.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes