Buy or Lease? You have options!
WHY BUY?
If you like to keep your car for as long as it has life, then buying is most likely for you. Buying, or loaning, normally requires more money up front, as well as month to month, but, once you've paid everything off, there aren't any more monthly payments because you now own the car. Buying a car is a good option for those that want to own their vehicle, tend to drive a lot, don't want to worry about leasing fees, and are in it for the long haul.
BUYING PROS
Leasing is a great option for those that always want the latest and greatest thing. Your lease lasts for two to three years, depending on the vehicle, which means that every two to three years you can sign a new lease for a brand new vehicle. Because these vehicles are so new, the warranty doesn't expire and any major repairs that may come along are taken care of. Leasing does have some limits though. Here is a list of leasing's pros and cons.
LEASING PROS
If you like to keep your car for as long as it has life, then buying is most likely for you. Buying, or loaning, normally requires more money up front, as well as month to month, but, once you've paid everything off, there aren't any more monthly payments because you now own the car. Buying a car is a good option for those that want to own their vehicle, tend to drive a lot, don't want to worry about leasing fees, and are in it for the long haul.
BUYING PROS
- No more payments after the loan is paid off.
- Feel free to modify your car however you want because you own it.
- Over a long period of time, you spend less money when you buy.
- Has your vehicle needs changed? Trade in your current car and put it towards a new one.
- You can sell your vehicle at any time without worrying about fees.
- A higher down payment is normally required.
- Monthly payments for a loan are generally higher than a lease.
- New cars depreciate as soon as they leave the lot.
- Once the new car warranty expires you are on your own when it comes to maintenance and repairs.
Leasing is a great option for those that always want the latest and greatest thing. Your lease lasts for two to three years, depending on the vehicle, which means that every two to three years you can sign a new lease for a brand new vehicle. Because these vehicles are so new, the warranty doesn't expire and any major repairs that may come along are taken care of. Leasing does have some limits though. Here is a list of leasing's pros and cons.
LEASING PROS
- Generally, monthly payments for a lease are a lot less than for a loan.
- You will either have a low or no down payment required.
- The vehicle you lease could be a higher trim level for the same amount of money that you would be paying for a loan.
- Once the lease ends, you are able to get another new car, without having to figure out where your old one will go.
- Because of the factory warranty, you pay less for repair and maintenance.
- As long as you lease, you'll always have a monthly payment.
- You'll face a fine if you go over the allotted number of miles.
- Over time you'll spend more money on a lease than a loan.
- Ending your loan early may cost you in fees.
- If you have excessive wear and tear you'll face more fees.
