Long-term leasing or cash purchase, which to choose?

Leasing or cash purchase, which should you choose? It’s a common dilemma for new car buyers. Some people think leasing is the best option because it offers lower monthly payments and you don’t have to worry about selling the car at the end of the lease. Others prefer to buy a car outright so they can own it and sell it whenever they want. Both options have advantages and disadvantages, so how do you decide which one is right for you?

Before making your decision, you should consider how long you plan to keep your vehicle. If you only need it for a short period, leasing might be the best solution because you can return the car at the end of the lease and get a new one. If you want to keep the car longer, buying might be a good choice.

You should also consider how much money you have available. Car loans are often 100% financed by the bank without a down payment. So, if you don’t have a down payment, leasing can be more complicated. If you want to simulate the cost and get an idea of ​​the price, there are dozens of comparison websites. Qarson, for example, offers its own, which is quite simple and quick.

As a reminder: here’s the difference between a long-term lease and a lease:

A lease with an option to buy (LOA) means that the lessee can choose to purchase the vehicle at the end of the contract. On the other hand, if you have a long-term lease, you must return your car at the end of its term. Learn more here about the advantages and disadvantages of buying a vehicle compared to an LOA/LLD.

What are the pitfalls of a long-term lease?

While leasing allows you to pay for your car monthly and feel more financially stable, at the end of your contract, you likely won’t be able to finance another vehicle in the same way. Furthermore, if you don’t keep the vehicle in good condition, you’ll have to pay for repairs when the lease expires. You should also be aware that exceeding the mileage limit stipulated in your lease agreement will incur additional charges.

However, if you sign a new lease with the same company, you generally have more options to help you finance another car.

1. The Advantages of a Long-Term Lease (LLD)
2. Leasing a vehicle is more suited to short-term drivers due to the mileage limit. The primary target market for these offers is city dwellers who typically only need their car on weekends, for vacations, or even for short trips around town. And the advantages are numerous:
3. A new vehicle every 12 to 60 months.
5. A fixed monthly cost in advance.
6. A potential purchase that requires no personal financial contribution.