Buying a Car vs. Leasing a Car
At Mount Airy Chrysler Dodge Jeep Ram, we know you have many options when shopping for a new car. Once you have narrowed it down to what make and model you want, you have to think about financing. One thing to consider when getting a new car is should you buy or lease. What are the cost differences? And is one better than the other?
Whether buying or leasing is right for you depends one a couple of factors. Ask yourself some questions:
How much do you drive every year?
How clean do you keep your car?
How often do you like getting a new car?
Are payments the most important factor?
When you buy a car, it’s yours, you own it. Whether you are paying cash or financing the car-You can do as you please with it. Drive it as much or as little as you want. Once you make the last payment, the car is 100% yours. You can keep it, sell it, trade it in, or give it away.
When you lease a car, it’s not yours- it’s the financial institutions. You are paying for the use of the car. That is why there are usually mileage limits and you have to be careful not to put too much wear and tear on it. You can usually get lower monthly payments with a lease with little to no money down. And the end of the lease, you can buy the car or turn it back in or lease another car.
Leasing a car is a cheaper option, but can get expensive if you go over the mileage limit or have damaged the car while using it. It is not recommended for people who are rough on the interiors of cars. It can be a great option if you are someone who likes to get a new car every 2 to 3 years. It can save you money on a down payment and monthly payments, but after the lease is over you do not own anything.
Buying a new car can be a great investment. You don’t have to worry about turning it back in. You can use the car as you see fit. You can maintain the car as you see fit- although protect your investment with regular scheduled maintenance to help with the resell value. If you know you are more likely to keep the car for a long time, buying can be the best option.