Essay Sample: Buying Used Makes More Sense Than Leasing

When Buying Used Makes More Sense than Leasing by Phillip Reed is an article that talks about buying used cars as a better option of car ownership than leasing. To many individuals, leasing seems as a cheaper and faster means of acquiring a vehicle. However, people end up paying a lot of money collectively after a lease period compared to buying a used car. I agree with Reed's point of view that individuals incur an unnecessary cost by leasing new cars which function the same as used cars. The only question is whether an individual prefers to always drive a new car. Therefore, buying a used car is the best solution when one looks deeply into their finances.

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Buying a used car is relatively cheaper than leasing a new car. At first, leasing may seem affordable, quick and easy. However, when one thinks of leasing their entire life then the cost may end up being too high. It is better to save up and buy a used car than to have deductions to one's salary every month. It makes the bills expensive to maintain. Secondly, the registration costs of leasing are higher than that of buying a used car. This is because one has to register for the three years of the lease period based on the value of the car. A leased car requires more insurance than a used car. An individual has to covers for insurance as required by the lessor which is costly. On the other hand, the owner of the used car is free to choose the risk he/she wants to insure against which saves money. Thirdly, the buyer of a used car does not incur additional fees and penalties. Many leasing companies charge disposition fees when one is turning the car back in. Moreover, one could be charged for excess wear and tear on the vehicle or incur the cost of repairing the vehicle before returning it. Although one may decide to buy an up-front warranty to cater for these expenses it is still an additional cost not incurred by those who buy used cars.

There are restrictions to what one can do to a leased car. Lease payments are commonly based on driving about 12,000 miles per year. If one drives past the limit then he/she is charged an extra 20 cents per mile. The changes an individual cam make to the car are also limited. On the other hand, the buyer of a used car does not have to worry about the distance they cover. They are also at the liberty to make alterations to the car's engine and interior design of the car to suit their needs. Buying a car gives one freedom. The other reason is that anyone can buy a used car. However, leasing has stringent credit requirements that only shoppers with top-tier credit enjoy. This implies that individuals with mid-tier and lower credits pay higher installments. Finally, a used car does not depreciate as fast as a leased car. It is estimated that a leased car depreciates by about 50 percent over three years and a three-year-old used car depreciated at only 25 percent. Thus the used car costs less than a leased car.

Reading Reed's article has changed my opinion about buying used cars. I always thought that buying a used car was expensive but thinking of the long term cost it is cheaper. Moreover, a three-year-old used car is not very old if it is maintained properly. The used cars also have sophisticated technology and the outer appearance does not have a significant difference from the leased cars.