Before you decide whether to sell or lease your car, it is crucial to understand the pros and cons of each option. Selling your car will transfer ownership, but finding a buyer for an old model vehicle can be difficult. Leasing offers flexibility without the commitment of selling your vehicle. Find out the pros and cons of each option below!
Selling Your Car
When you sell your vehicle, it will be transferred into another person's name, and that individual is now responsible for any repairs or maintenance required by the car.Pros
Should I sell my car? Selling your car transfers ownership and responsibility of the car to another individual. You won't have to service or fuel the car anymore.Cons
Finding a buyer for an old model used vehicle can be difficult, especially if you do not have the time or resources to advertise your vehicle.If selling your old model used car proves difficult, consider donating it to a charity. These organizations buy donated cars from people who want to sell but do not have the time or resources. They resell these vehicles at a price that helps people in need of transportation acquire them while raising money for families and children without homes.
Leasing Your Car
When leasing your car rather than selling it, you will receive monthly payments for a set period. The period the lease lasts is subject to your agreement with the lessee. During this period, the lessee maintains and services the vehicle as you receive your monthly pay. Leasing is especially beneficial if you have a new model car that is highly sought after in the market.Pros
Leasing your vehicle emancipates you from maintenance costs while earning monthly payments as agreed in the lease agreement.Secondly, full ownership of your car shall revert to you upon the termination of the lease. You can also precisely calibrate mileage as part of the lease agreement. This way, you have indirect control over the lessee's vehicle use during the lease period.
The requirement that the lessee must have good credit protects your investment. You will only lease out your vehicle to a financially sound person who can make your periodic payments promptly.
Lastly, your vehicle must revert to you in the condition you gave it. While you must consider depreciation, the lessee cannot make any extensions or customization on your automobile.
Cons
If the lessee defaulted during the lease period, you could find yourself in a situation where your vehicle has been damaged and cannot be returned to you.So, should you sell or lease your car? The above arguments for and against leasing and buying point to one thing- leasing your car is much better than selling. Asides from receiving monthly payments, the ownership of your vehicle will revert to you. Additionally, you can control the scope of your vehicle's usage in the lease agreement. However, remember to transact with financially sound individuals with good credit scores.
Deciding whether to lease or sell your car has many benefits and drawbacks. But you can find out which option suits you best by consulting a financial advisor or an experienced dealer.
