Are you in the market for a
new vehicle? Maybe you have a child on the way or are moving to a town without
adequate public transportation. Or perhaps your current vehicle has just passed
its prime and it’s time for an upgrade. Whatever your reason, buying a vehicle
is one of the most significant purchases you can make, so it’s important to
consider your options.
While most people still opt to
buy a vehicle, data shows that more and more consumers are looking to lease.
There are pros and cons to both leasing and buying, and it really comes down to
the shopper’s preferences, priorities, and financial circumstances. If you’re
getting a new vehicle, consider these factors so you can make the best decision
for you and your family:
Advantages
of Leasing
In the short-term, leasing
could be in your best interest. One of the most practical reasons is that
your monthly payments will probably be much lower than if you were to buy a
car—actually, 30-60% lower. This can allow you to drive a car that you
otherwise wouldn’t be able to afford. Also, typically there is little to no
down payment required, you pay less sales tax, and your warranty will cover all
repairs throughout the duration of the lease.
One advantage of leasing that
attracts many car shoppers is that you can drive a new vehicle every two or
three years. Moreover, when you lease a vehicle, you don’t have to worry about
selling or trading your vehicle when the time is up, which can be a stressful
and time-consuming process. You simply turn the car in and pick out your next
one.
Disadvantages
of Leasing
In the long-term, leasing has
its downsides. Once the lease is over, you won’t own the car, and you will end
up paying more overall than you would if you bought a vehicle and drove it for
10 years. Also, the contracts that come with leasing a car can be confusing and
stressful, and some shoppers must hire a professional to look over the
terminology before signing.
When you lease a vehicle,
there is typically a mileage restriction (e.g., limited to 12,000 miles per
year), and it’s an additional cost to add more miles if you need them.
Furthermore, if your needs change and you want to terminate the lease early, it
can cost a pretty penny. One of the most significant downsides to leasing a
vehicle, however, is that you are responsible for meticulous maintenance of
your vehicle; many drivers are surprised by the charges at the end of their
lease for vehicle wear-and-tear.
Advantages
of Buying
Buying a vehicle can prove to
be the better investment long-term. If necessary, you can spread out the costs
over a number of years to make your monthly payments lower. Once your vehicle
is paid off, you own it outright. This means you can drive it for years without
making any payments, and you can trade it in when you buy your next vehicle.
Plus, by buying you can customize your vehicle any way you want (e.g., adding
bumper stickers, new rims, leather seats, etc.), and there is no limit to how
many miles you can drive each year. You will also be safe from the shocking wear-and-tear
charges that can happen at the end of a lease.
Disadvantages
of Buying
As with leasing, buying a
vehicle comes with its disadvantages. For one, you can expect your monthly
payments to be higher than if you were to lease. Also, you could face a high
down payment upon purchasing the vehicle; otherwise, you could end up having to
pay more on the loan than the vehicle is worth. Furthermore, when your warranty
runs out on a purchased vehicle, you become responsible for paying the full
costs of repairs, which often come unexpectedly. Buying a vehicle also means that
you may have to go through the selling or trading process when it’s time to get
a new one.
Conclusion
Whether to lease or buy your
next vehicle depends on your needs and preferences. Leasing can be more
exciting and less expensive in the short-term, as you pay lower monthly
payments and can get a new vehicle every two to three years. Buying a vehicle,
however, allows you the freedom to modify your vehicle and drive it as much as
you please, and you will probably pay less in the long-term. Mull over the pros
and cons before making your decision, and be sure to visit us at Mount AiryChrysler Dodge Jeep Ram to talk with our experts and take a test drive!
Article
written by Alex Watson
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