Car Buying Information
Advantages and Disadvantages of Buying a Car
| Advantages | Disadvantages |
| You can choose between a new or used car and sell it whenever you choose. |
The mileage, condition, and popularity of your car will determine its final value. |
| The car is yours when the loan is paid off, and you can use it as security for another loan. |
If you don't make car payments on time and in full, your lender can reposssess the car and resell it. |
| You may put as many miles on the car as you like, and you invest as much or as little as you choose in maintenance and repair. |
If the resale price of the car is lower than the amount you owe on your loan, you could get stuck with paying the difference. |
Advantages and Disadvantages of Leasing a Car
| Advantages | Disadvantages |
| The car will most likely be new or one or two-years old, at most. Used car leases are hard to find. |
You'll probably have to pay a penalty if you: break the lease early, exceed annual mileage limits, don't meet a specific maintenance schedule, or fail to make the required monthly lease payments on time. |
| When the lease ends, you can return the car or buy it for a previously determined price (the residual value). |
You won't be able to pledge the car as security for a loan becaus you don't own it. |
| Your monthly lease payments will be lower than monthly loan payment on a comparable car. |
You'll have to pay for any repairs needed at the end of the lease period to make the car resalable. |