New Vehicles – Buy vs Lease
When it comes to buying a new vehicle, you’ve probably wondered whether buy vs lease is in your best interest. Because there are so many different options available for bringing a new car home, it really comes down to what fits right for your specific situation.
When buying a new vehicle, there are a lot of pros involved. For one, you’ll eventually own the car outright, leaving you free from payments. Once your car is paid off, you can sell it whenever you’d like. Other pros of purchasing a vehicle outright include:
- You’ll have no concerns about high mileage or how many miles you’re putting on the vehicle.
- You can modify the vehicle with custom accessories, knowing that you don’t have to walk away from the car when you’re finished.
- Insurance premiums tend to be lower when you own the vehicle.
Although there are many positive aspects of buying a vehicle, there are certain drawbacks as well. Monthly payments tend to be higher than if you had leased your vehicle, and some dealers require a large down payment. You can also expect to pay for repairs when your vehicle is beyond the warranty stage.
Leasing a vehicle is a popular option for many Americans. That’s because leasing involves lower monthly payments, a smaller or easily negotiable down payment, and no up front sales taxes. With a leased car, you don’t have to worry about depreciation or whether you’ll have to pay for repairs because once the leasing period is over you simply return the vehicle.
Unfortunately, when it comes to vehicle leasing, there are also some cons. For one, you’ll always have a car payment monthly. If you drive over you allotted miles, you’ll have to pay extra fees ranging from .15 to .25 cents per mile. As well, any wear and tear including stains to the interior or minor dents will cost you extra as you are responsible for keeping the vehicle pristine.