Congratulations, it’s time for a new car! If you’re in the market for a vehicle update, there are quite a few decisions you have to make! Aside from all of the fun stuff – make, model, color – you also have to think about logistics – AWD vs FWD, fully loaded vs base model, buying vs leasing. Whether this is your first car purchase or your tenth, there are always variables that need to be considered. Perhaps one of the most common dilemmas is whether to buy or lease your new vehicle. If you really just aren’t sure what the difference is, we’re here to lay out the pros and cons of each so you can figure out which route is the best way to go. Keep reading!
Of course, the biggest concerns with a purchase this big are how much it’s going to cost and which is the best deal available. Many people choose to lease their vehicle because of lower monthly payments and less money up front. Leasing also allows for you to potentially afford a more expensive car. On the other hand, if you purchase your vehicle, you have the opportunity to eventually pay off your loan so you won’t have any more car payments. With leasing, you’ll always have a bill. Buying your car also tends to cost less over time, but your monthly payments are noticeably higher. Both options have their perks and downfalls – you just have to look at your numbers and see which option best fits your financial lifestyle.
Time and Commitment
Some people go the leasing route for the promise of a new vehicle every three years. After your lease contract is up, you turn in your vehicle and pick out a new car for the next three years. It can be said that leasing ultimately saves you money on maintenance costs since your car will never be older than three years. However, once it’s time to turn in your car, there’s no opportunity to make any money back as there would be with a purchase. If you decide to buy your car, it will depreciate in value as soon as you drive it off the lot and it’s nearly impossible to make back what you spent. When it’s time to trade up, you will have a lower value. With a lease, you’ll have zero value.
Something else to consider: when you buy your car, it becomes yours. You can keep it for however long you want; you can sell it, paint it, take it on a cross country road trip…there’s really no limit. When you lease a car, you never truly own it and there are often limitations and regulations on what you can do with the vehicle. Of course, you have to do decide what’s most important to you.
One of the most important things to consider when you’re looking for a new car is how much driving you do in your everyday life. If you’re retired, work remotely, or don’t have a long drive to work, leasing can be a good option for you. When you lease a car, you’ll have a mileage limit – usually 12,000 per year – and you’ll be charged a certain amount per mile if you exceed the limit. If you have a long commute or travel a lot, you’re probably better off buying a car. That way, you won’t have to worry about going over your yearly mileage and can do as much driving as you need.
When deciding which option is best for you, it’s a good idea to look at every aspect of your life. Both buying and leasing have their pros and cons and while one option may not work for someone else, it may work for you. To get started, check out this nifty tool on our website; it’ll help point you in the right direction. As always, whatever questions you may can be answered by any of our team members when you visit our dealership. Stress not, however, because there’s an option out there that’s perfect for you! We’ll help you find it 🙂