Buying or Leasing a Van: The Pros and Cons

Van leasing has been a very popular choice lately. The reason for this is the many benefits it brings. The thing we need to answer is whether this is the right option for you. We’ve weighed the pros and cons. Hopefully, this will help you make your decision.

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Van

The Money Issue

Buying a van can save you a lot of money, especially if your plan is to keep it for a long time. The art of negotiation can get you a much better deal, and there will be no limits on how many miles or where you can go. But leasing a vehicle is even cheaper, so that is an excellent option if you lack the means to buy one. You will have fixed monthly payments over an agreed contract term. This means you might get a much better vehicle than you thought you have the money for. Most come with a maintenance and breakdown package included. This will save you more money on running and repair costs.

Maintenance

Because most packages include maintenance costs and breakdown cover, that means you won’t have to pay yourself for these things. The potentially bad side of this is that it leaves you at the mercy of your leasing provider’s mechanics. When you own a van, you can choose your own mechanic and shop around until you find a specialist. Also, when you buy a vehicle, the wear-and-tear will eventually take its toll, and therefore the repair costs will increase. Just make sure that the maintenance does not exceed the van’s vehicle. It goes without saying that maintaining a newer van will be easier than an older one. Keep in mind that wear-and-tear can lower the vehicle’s trade-in or resale value, so it’s always a good idea to keep it in shape.

Changing Your Van Often

If you’re the type of person who needs to change your vehicle often, leasing is probably the best option. It gives you the opportunity to change your van for something newer at the end of the agreement. You also have the option of using your old van as a part exchange on the new one. You’ll get the latest technology and the newest models for much lower prices than when buying a vehicle. You can also do the same when buying a vehicle, but there’ll be more paperwork involved, and it’s often more expensive.

Restrictions

A big difference between buying and purchasing is the number of restrictions you’ll get. When buying a vehicle, the car is fully yours, and this means you have much more freedom to do as you please with it than if you leased a vehicle. Leasing contracts usually include a mileage limit. This limit is usually 10,000 to 12,000 a year. Figure out how many miles you actually need because exceeding the limit costs a lot. You’ll be responsible for keeping it in a certain condition as well. If they find any cosmetic damage at the end of the agreement, you will have to pay for it. You’ll also be unable to customise your vehicle when leasing it, so buying is definitely the better option if this is something that matters to you.

Many Options

The possibilities are endless when buying a van. You can adapt and customize it as you please. Keep in mind that in the case of taking out a personal loan to purchase it, you’ll have to keep the vehicle until it’s paid off. On the other hand, leasing might give a smaller amount of options, but more flexibility until the end of the agreement. Besides trading in your van for a new model at the end of the agreement, most companies offer several payment agreements to choose from. Choose from a straight lease or lease purchase. The lease-purchase gives you the option to buy the vehicle at the end of the term.

Risk

In general, leasing provides more security and peace of mind to drivers because less risk tends to be associated with it than with buying one. So if you’re a person who likes their sense of security, leasing might be the right choice.
Leased vehicles are not considered assets like the ones that are bought. That means that your vehicle won’t be seized to pay off debts even if you run into financial trouble. Keep in mind that this isn’t always a positive thing because the value of your vehicle cannot save you from being in the red even though you can’t be stripped of it.

Ownership

It’s a well-known fact that you only own the car once you purchase it. When you lease the vehicle, it’s actually owned by the leasing company, and they are the ones you’ll have to listen to. You must return it at the end of the lease unless you decide to buy it (if that’s an option at all). Some people find a sense of autonomy and freedom owning something brings to be of tremendous importance, and if you are one of them, buying is the perfect option. Not only do you own the car, but you also have much less to worry about because you don’t have to follow the company’s rules. Leasing can often feel like a very long and unrewarding process after years of monthly payments.

Early Termination

If you need to get out of a lease before it expires, it will cost you, and the amount won’t be small. There can be pretty severe fees and penalties. That’s why you need to read the contract carefully before signing anything. The charges can be as high as sticking with the contract. Sometimes there are cases of someone buying the car from the company as a trade-in, thereby letting you leave the lease early. With a bought vehicle, you can sell it or trade it in whenever you want to. You can also use the money from the sale to pay off any loan balance if need be.

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