Car Leasing vs. Buying

When it comes time to get your next vehicle, you’re faced with two primary options — you can either lease a vehicle or buy one. As you’re browsing, you’ll likely see different prices based on whether you lease or buy the vehicle. However, there’s more to consider than just the cost of the vehicle when you’re trying to decide whether you want to buy or lease. Below, we’ll cover some of the biggest benefits of both options and give you some tips on how to decide which is right for you.

Benefits of Buying Your Next Vehicle

First, let’s look at buying a vehicle. When you buy a vehicle, you typically pay for it with a combination of cash, a trade-in, and an auto loan. These loans typically last between five and seven years and allow you to pay off the value of the car a little bit at a time. However, auto loans also come with interest, meaning you’ll end up paying considerably more than the initial loan amount by the time the loan term is complete.

One of the biggest benefits of buying a vehicle is that eventually, you won’t have to worry about car payments. If you take out a five-year auto loan and pay it off on time, you won’t have any more car payments once that five-year period is up. This is a great benefit for those people who intend on keeping their vehicles for a long time. With proper maintenance, you can likely keep your vehicle in great shape well beyond five years, enabling you to get great value out of it and have several years without monthly auto payments.

When you buy a vehicle, you also get a wider selection. Since leases are only available on new vehicles, you don’t have the option to get something a little older. The option to buy a car is available on both new and pre-owned vehicles, giving you a wider selection to choose from.

Another benefit of buying a vehicle is that you are the owner. With a lease, you are essentially borrowing the vehicle from the dealership, which means it comes with some limitations. For example, if you want to perform some modifications on your vehicle, such as adding a remote starter, you can’t do that with a lease. Owning the vehicle also gives you an asset in your financial history, which can benefit your credit score.

Finally, when you own a vehicle, you can sell it when you’re done with it. This enables you to recover some of the value of the vehicle, which you can then put toward your next car. With a lease, you just give the car back to the dealer.

Benefits of Leasing

Leasing a vehicle comes with its own benefits. One of the primary reasons people choose to lease a vehicle is the monthly cost. Dealerships often offer great lease deals that make owning the car more affordable each month. If you’re more concerned with the monthly payment on your vehicle rather than the long-term cost, you may prefer to get a lease.

Another benefit of leasing is that you’re always driving the latest vehicles. Leases are only available on the newest models, meaning you’re getting a car with all the latest equipment, entertainment, and safety features. Car manufacturers regularly make improvements to their vehicles, to the point that a vehicle that’s only a few years old can feel out of date. If you like the reliability and enjoyment of driving a new vehicle, this is much easier to do over the long term if you choose to lease.

Finally, since you’re driving only the newest vehicles, you typically don’t have to worry as much about repair costs. While those who buy vehicles may eventually pay off their vehicle, they also have to pay more in regard to car maintenance and repairs. The older a vehicle gets, the more likely it is to break down and need expensive repairs. If you’re tired of unexpected repair costs or getting stuck on the side of the road, you can significantly lower your chances of this happening by going with a lease over buying.

How To Decide Which is Right for You?

There are pros and cons to both buying and leasing. It’s more important to think about which option is right for you, rather than which option is best. To help you decide this, here are a few things to consider.

First, think about your financial situation. How much can you afford to pay each month, and how much can you put as a down payment right now? These are likely the two biggest factors that will determine whether buying or leasing is a better fit.

After that, think about your ideal future situation. Would you prefer to no longer have car payments in a few years, in exchange for driving around an older model? Or would you prefer to always have the newest vehicle, avoiding many repair costs and having a more enjoyable drive?

Let Koons Woodbridge Buick GMC Help You Decide

If you’re still unsure of which method is best for you, let Koons Woodbridge Buick GMC help you figure it out. We can not only discuss with you the benefits of both options but also help you find the perfect vehicle based on your choice. Our expert sales staff can also help you crunch the numbers so you can see which option is better for your financial situation, both now and in the future.

To get started, try browsing through our inventory online. You can see what models we currently have in stock, along with their prices. You can also see if we are currently offering any deals, which will make your next car even more affordable.

We know that choosing between buying and leasing is a major decision. Let our team help you find your next vehicle under a payment plan that fits your needs and preferences. Contact us today to learn more or to schedule a time to visit our dealership.

Image via Pexels by Negative Space

Tags: Lease
Posted in Finance | No Comments »