Whether you are planning on getting a car for personal or business use, you have the option to rent or buy one. There are pros and cons to these two options, and the best way to go is whichever meets your needs and is ideal for your situation. We listed their differences in various areas to help you decide.

Down payment

You can fully pay the car you wish to purchase or finance it. The latter means that you will pay a down payment and have monthly payments until you complete the entire balance. When you lease a car, there will also be a down payment. However, it’s generally cheaper than the down payment of a purchased vehicle.

Monthly fee

As mentioned, you need to pay the monthly fees and the price will depend on your agreed amount with the provider. However, leased vehicles usually have lower monthly costs than those that are bought. Make sure that you have enough cash each month to cover this payment.

Mileage

Leased vehicles have limits on their mileage. For instance, the cars offered for lease at www.genusleasing.com show their mileage limits as well as other information like their prices and terms of the contract. If you go over the mileage limit, you will be charged extra for every mile that you exceed it. If you own a car, you will not have any restriction on your mileage.

Insurance

Both leased and purchased cars require insurance. However, with the car that you purchase, you will decide on what type of insurance to get. If you lease a vehicle, the coverage will depend on the requirements of the lease provider.

Repair and maintenance

Whether you buy a new car, or you lease one, you will shoulder the repair and maintenance costs. If it’s under warranty, then these will still be covered. However, if the car is no longer under warranty, the money for the service will come out of your pocket. If the vehicle you purchased is already fully paid, there will no longer be monthly fees to consider. In case repair or maintenance is required, it may not be as tough as having a leased car serviced while still taking care of the monthly payment.

Term

Lease terms can be from a period of months to years, depending on what you agree on. Once you purchase a vehicle, you need to pay the full balance. However, if you decide to terminate the lease earlier than its end-date, you will be asked to pay an early termination charge that will cost a lot. Make sure that you can commit to the term to avoid this.

Long-term cost

The initial cost of leasing a vehicle may be lower, but if you compute the long-term expenses, it will cost more than purchasing a car.

Purchasing a new vehicle is not for everyone, and neither is leasing. Consider the various factors explained above before making your decision. Think not just of the initial benefits of each option, but what they offer in the long term too.