There is an important distinction to be made between buying a car and titling it in your name, and actually leasing a vehicle. For one, a lease leaves ownership in the dealership’s name, while buying puts it in yours. As you set out to shop for a new car, how you will pay for it is likely a primary consideration. There are some pros and cons related to both buying and leasing, so it is helpful to be armed with important information that can help you make an informed decision. What you decide will determine how you get the best buy for you and your individual situation.
How Often Do You Want a New Car?
You are likely in the market for a new car now, or you would not be reading this article. The further question, however, is how often you like to receive a new car. If you get bored of your car every few years, then leasing might very well appeal to you. With a lease, you will drive the car for a period of roughly three years. At the end of that time, you will need to turn it back into the dealership. You have never actually owned the car, you are just being granted permission to drive it for the duration of a lease. If you are ready for another new car at the end of the lease, then you choose a brand new model and drive it off the lot the same day.
If you buy a car, it is yours to keep. This might be appealing to you if you plan to keep the vechile for quite some time. If, however, you decide to sell it after a few years because you want a new car, you might be disappointed to find out how much the value has dipped during that time. When you buy a car, there is depreciation to take into account. In fact, this kicks in the moment you drive the car off the lot and it continues until the day you decide to sell. This is an expense that you, the car owner will bear, so that is something to keep in mind.
Repairs Are a Consideration
Unless you are quite handy under the hood of a car, you will need to get some repairs done to your car from time to time if you are the owner. While the warranty will cover you for a time, you can count on some repairs being necessary after that expires. With a lease, the car is always like new. You will be encouraged to drive the car less because there is a mileage limitation. As such, the chances of a major repair becoming necessary during the term of the lease are extremely slim. Even if something were to go wrong, the car would be covered under warranty anyway.
When you go to buy a new car, finances are always a determining factor. In order to get the car that you actually want, with the options that you really have had your eye on for quite some time, you will need to get the monthly payments down where you can manage them and qualify for. This is another area where a lease might be appealing to you. In most cases, the monthly payment on a lease is much lower. This means that you can typically get more car for less money. With a lease, you can often pile on those options and still come out ahead in the long run than if you were to buy the car. Now, when you buy the car, it is yours. You retain ownership and you can modify it and drive it as much as you wish. If you have the cash to buy it outright, and you do not intend on selling in the first few years, this might be a good option for you to pursue.
There is a lot to think about when looking at a car. Take your time and find the best deal for you and your situation. If you do that, you will be happy in the end and enjoy your new car.