When you set out to get a new car, these are your two main options. Both have their advantages in many cases, while to be fair they each have a few downsides as well. You simply want to make sure that you make the best decision for you and that you ultimately end up with a new vehicle that you enjoy, at a price that you can more than live with. To help guide you through that decision making process, consider the following information related to the leasing and purchasing of a new car that should help you.
Do You Like to Keep Your Car Looking New?
If you are the type of person that gets bored after a few years with an outdated vehicle model, leasing may very well be for you. Remember, when you buy a car outright you are usually saddled with five years of loan payments before the title is in your name. If you want to change cars before the end of that term, you have to find a buyer for your car at the price that you still owe. This is very difficult to do. With a car lease, you are able to get a new car every three years or so, without ever having to worry about selling the car first.
Consider the Mileage
One potential limitation of a car lease is the number of miles that you are able to drive each year. This is no an issue if you tend to stick to city driving with this particular car. You will get a dependable car that you can be happy with. If, however, you plan to drive on long trips throughout the course of the year, you could eat through those allotted miles pretty quickly. Remember that you will need to pay a flat rate per mile that you exceed the terms of your lease contract.
The Issue of Repairs
There is also the issue of car repairs to consider when deciding whether to lease or buy a car. With a new car, all repairs, major and minor, will be your responsibility. Sure, the car might be under manufacturer’s warranty for a while, but eventually that will fade away. With a leased car, the vehicle always remains so new that a major repair is almost never necessary. In the rare event that it is, the car is cover under warranty so there will be no money coming out of your pocket.
How Much Car Can You Get?
When you go purchase a new car, you are limited by your budget. You only have so much money that you can afford for a vehicle, and this often precludes you from getting the actual car that you want. With a lease, the monthly payments are typically much lower than they be if your bought a car. This means that you can often move up a few car classes and get the vehicle of your dreams, without breaking the bank in the process. It is a win win situation.
One of the unfortunate realities of car ownership is that the vehicle you purchase is already worth considerably less the moment that you sign the contract on the dotted line. In some cases, this can equate to thousands of dollars before the odometer even reaches 100 miles. This means that it will be that much longer before you can even sell the car for what you owe on it. That is not the case with a car lease. You have set monthly payments every month, and that’s it. You are not concerned with the actual value of the car, as you will simply turn it in at the end of the lease anyway.
Now that you have some basic information relating to the pros and cons of buying and leasing a new car, it is up to you to decide which option is best for you. In most cases, a lease is very appealing and works out nicely. You will enjoy the lower payments and the flexibility that comes with the dealer taking care of everything else.