For all the benefits applicable to both leasing and buying a car, certain cons also exist for each option. Differences in the financial aspects are discoverable using a lease vs. buy car calculator, which is available online at various automobile-related websites. What are the financial cons of buying or leasing a vehicle? What are several other cons for each option?

Leasing a vehicle is similar to renting your home instead of obtaining a mortgage. This is one of the more substantial cons to leasing your car. For example, you pay money each month but do not own anything in the end.

Buying or Leasing a Vehicle: What Are Their Drawbacks?

Lease agreements impose mileage and other restrictions on the use of your vehicle. If you drive above the contractually allotted amount you are charged extra money for your lease. When you lease a vehicle you are required to return it at the conclusion of the lease in the same shape, color & condition it was at signing time. 

Should you not do this, financial penalties are applied. No such rules or requirements exist when you purchase your car. Lease agreements also assess charges for wear-and-tear on the vehicle. Some amount of normal wear and tear is almost guaranteed to happen during the term of your lease, and extra charges therefore applied.

Cons for buying a car also include financial factors. For example, the required down payment for an auto loan vs. lease agreement is generally higher. 

Monthly payments for auto loan installments are also commonly higher than those for lease payments because lease payments do not include finance-related APRs. Car values depreciate quickly. The possibility exists for you to owe more on the vehicle than it is worth at some point during the loan term. 

Use a lease vs. buy car calculator to help avoid this type of situation when making your auto buying decisions. Trading in or selling a purchased car is subject to more negotiations and hassles about its true market value. More paperwork is involved for you as well. A final major con pursuant to buying a car involves repairs and expenses. When you own your car you are responsible for all repairs, insurance premiums, registration/tag costs and more.