In the market for a new car but not sure whether you should buy or lease? Financing a car can be confusing, so we’ll explore the pros and cons of each. Let’s determine your needs and see which fits best in your lifestyle.
Leasing a car is a lot like leasing an apartment, you are paying to use the car. You make a small down payment and then monthly payments for the term of the lease which is typically two to three years. At the end of the term, you return the car. There are many pros of leasing. Monthly payments are lower on a lease, and you can get a more upscale car for less money. Repair costs are less because your vehicle is under factory warranty during the term of the lease. For people who always want the newest model, once your lease is up, you can easily transition to a hot, new model. As with everything, there are cons of leasing a vehicle too. The main con of leasing is at the end of your lease; you don’t own the car. Another one is additional or surprise charges at the end of your lease. Typically, mileage is limited to 12,000 miles a year and you are charged a fee if you go over that limit. You can also be charged for excessive wear and tear. Lastly, if you want to terminate your lease early, there will be an early termination fee.Buying
Over the long term, buying a car is more affordable than leasing. Pros of buying include flexibility to sell the car whenever you want and to modify the car as you please because the car is yours. If you drive an excessive amount annually, buying may be a better choice for you. There is no need to worry about how many miles you drive per year as there is no mileage overage fee that is typical with a lease. Buying is more affordable than leasing over a long period of time especially if you keep it as long as possible. You’ll also want to weigh the cons of buying a car as well. Buying a car requires more money. Down payments and monthly payments are higher than lease payments. Repair costs can be higher as once the warranty runs out, you are responsible for all repair costs. When you’re ready for a new car, it can be a hassle to trade-in or sell your current vehicle and depreciation can cause you to lose money.Determine your needs and preferences and decide which financing option is best for you. If more car for less money is your priority, leasing is for you. If it’s more important for you to own your car, than go with the buying option. To see all the cars we have available for lease and purchase, go to www.tischerauto.com.