Difference Between Lease and Buy

Lease vs Buy

Lease and buy differ a lot. When you buy a certain product by using the buy it option, you would have to buy it directly. You would not always be presented with the option of buying it by paying monthly installments.

You would have the advantage of estimating what you can spend while making a down payment if you are buying through lease. At the same time you can make the estimation of how much you can spend per month on monthly payments.

Lease is a very good option if you are going to keep the product for a short period of time. Buying is the best option on the other hand if you are going to keep the product for a longer period of time. Let us take for example leasing or buying a car.

If you want to keep the car for three years or so before changing it, then you can go for leasing since lease has better advantages over buy, especially in case the product is likely to be retained for a short period of time. Buying the products under the same circumstances would cost you more for certain.

If you have decided to keep the car for more than say 5 years, then you would do well to buy the car rather than leasing it, for you would end up more for the car in case you leased the car. This is one of the main differences between lease and buy.

The difference between lease and buy is actually the difference between the average money that you would have paid for the product per year. It is advisable to consider the better option between leases and buy. It is quite true that some leases allow you to spend less monthly than buying.