Car Buying Versus Car Leasing: Which One Is A Better Option?

For those who wish to ask what car leasing is, it is a process that helps you in partial ownership of a car for a specific period of time. In simple terms, it is a rent contract under which an asset is rented out and when it expires, the asset is returned to the original owner. Car leasing has become a norm especially for corporate companies. Since, more and more MNCs are now offering cab services to their employees; corporate car leasing has turned into a full-blown business in India. Still there are many who advocate vehicle purchasing as compared to leasing. There are several points that can be discussed in favor and opposition both the processes.

Ownership as well as leasing of a vehicle has some drawbacks. While car buying is an expensive affair, leasing is a more pocket friendly option. For a car you usually need a loan and for a loan, you will need a security for approval. As the value of the vehicle depreciates quickly, you start losing money as you drive it out of dealership. So, even if you resell it next day after purchase, you will lose considerable amount. On a pro side, it will be your own car and every EMI you pay for it will make establish your authority on it, part by part. You can customize it, drive it, and keep it as the way you want.

On the other hand, when you lease a car, you are paying far less amount as compared to purchasing the same vehicle. You are never affected by its depreciation as you just pay the fixed rent or installment for its partial or fifty percent ownership. You get to drive the vehicle and call it your own till you want and when you wish to change, you can simply put it up and get another vehicle. With purchasing and private ownership this facility you may not have this window. To conclude, both ownership and leasing has its pros and cons, you just need to assess your requirement and then take a decision about it.