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Why would you want to buy a car instead of leasing one?

Benefits of buying a car When you buy a car, there are no restrictions on mileage, so you can drive as much as you want without extra fees. You wont have to worry about what a dealer deems normal wear and tear. After you pay your car off, you can sell your car or trade it in if you want to upgrade to a newer model.

What is a benefit of owning a vehicle instead of leasing one?

Lower payments: The monthly loan payment for a car you own is generally more than a monthly rental payment. No fees/taxes: Standard expenses include taxes and fees at purchase and registration and inspections every year when buying a car. Youre not responsible for any of these in a long-term rental.

Why might buying a car be better than leasing a car?

Cons of Leasing a Vehicle There are mileage restrictions. You have no ownership equity when you lease. Leasing may involve several potential charges and fees. Customization options are limited with leased vehicles. Payments continue for as long as you lease the vehicle. Insurance may cost more for a leased vehicle.

Why does Dave Ramsey say not to lease a car?

Dave Ramsey, a personal finance expert, is opposed to car leasing for several reasons: Cost Inefficiency: Ramsey argues that leasing a car is generally more expensive over time compared to buying a car outright. Lease payments can add up, and at the end of the lease term, you own nothing.

What is the 1% rule in car leasing?

Leasing is just another method of financing, so youll actually be leasing through a bank or leasing company. This doesnt mean a dealer wont make money off a lease. In fact, most dealers LOVE leasing because it allows them to make more profit than a traditional car purchase.