- Unfortunately, there is no one-size-fits-all when choosing between buying outright, borrowing, or leasing a vehicle.
- Buying and borrowing means that you are able to choose whatever vehicle you want and within your budget, and modifying it however you see fit. It is after all, your asset so it has no limitations.
- However, the borrowing option can have a higher impact on reducing your ongoing cashflow, as you are potentially making interest payments as well as the repaying the capital.
- Can you afford to buy the car outright, and if so, should you?
- Don’t forget that if you are buying a vehicle outright, you need to continue to put money aside for your next upgrade.
- Leasing a vehicle can mean that you may be limited on your options and the modifications that can be done to the vehicle.
- However, this option can be tax-effective depending on your situation.
- The leasing company can also take care of the maintenance costs within your set monthly payment.
https://moneysmart.gov.au/student-life-and-money/buying-and-running-a-car