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Factors associated with buying or leasing a car.

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Introduction

Christina West 615-885-4841 Dr. Annette McCreedy Essay #2 10/13/03 When buying or leasing a car several considerations should be taken into effect. Buying a car is when payments are taken monthly if the car can't be purchased in one lump sum. A car lease is a short-term purchase and when the lease is up the car must be returned. Although leasing a car might be fun and ideal for people who have an abundance of money, buying a car is ultimately the best path. I feel that buying a car is a much better decision than leasing a car, because after the car is paid off it belongs to the buyer, still holds value, can be modified, and gives the owner a sense of pride. Also, when leasing a car the buyer is forced into a constant program of spending more money. ...read more.

Middle

Also, only the portion of the car being used is what is paid for. In other words, if the car is wanted for two years the payments will be only for two years worth, without having to resell the car or trade it in (Gin 1). If short-term use is one goal, a lease may make sense. However, if the use of a car will always be in need, but it doesn't have to be a new car, a lease is an expensive option. At the end of the lease term, the car will have to be replaced with another car, a different lease, and further series of payments. When buying, the car belongs to the buyer after the monthly payments end and does not have to be returned to the dealer. Leasing a car also involves mileage limits. If an agreement of how many miles the car is limited to is passed the leaser is charged extra for the miles exceeded over the limit. ...read more.

Conclusion

Kacya Cotton, a counselor with the Canadian Automotive Association, says that it's best to either let the car go or sell it to someone else (qtd. in Citrome). Also when leasing, the financial company, not the lessee pays for theft insurance (although the lessee is expected to pay for liability insurance). There are many factors to think about when leasing or buying a car. Simply, the reasons why leasing is not the smarter option are; the lessee never owns the car, monthly payments go more to the company that leased out the car then to the actual use of the car, the car cannot be modified, and going over the mileage limit can be very expensive. The main reasons why buying a car is better than leasing a car is the sense of ownership, ability to modify the car, and the saving of money. . . ...read more.

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