Car Loan: Buying a car on loan? Think before you do, it may be better to rent one, Do read before you make a move

Buying a car: Whether you should lease or buy a car primarily depends on your preferences for new or used cars and the amount of financing you have available.
It might be difficult to decide whether to buy a car or lease one. It might be challenging to decide which is better for your requirements and financial situation—leasing or owning both have advantages and disadvantages. In this article, we will share the Pros and cons of both and then you can decide.

Is buying a car or leasing a car better?

A brand-new car is an asset for you, but it is a depreciating asset. In actuality, a new car's value drops by approximately 30% after a year and by about 10% after you drive it out of the dealership. While there is a probability that a used automobile you purchase will return to you between 80% and 90% of what you paid for it, this is not a guarantee.

Pros of renting a car

• You can rent a new car every few months or years.
• Way less maintenance cost
• No large down payment

Pros of buying a car

• You can own it for a long period of time
• No mileage issues

Cons of renting a car

• Mileage issues
• May have hidden costs
• Security deposits

Cons of buying a car

• Repair Costs
• Huge down payments
• Depreciating asset
• Loan issues

Verdict

Although each solution has advantages and disadvantages, the best option for you will rely on your unique needs and preferences. Renting might be better if you want to change your car from time to time but buying might be better for you if you want a keep it for long and do not like anyone else using your car.

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