Leasing Vs Buying

April 15th, 2022 by

There has been a debate for many years over leasing and buying cars. There are many that believe that leasing is the best way to go, while others believe leasing is a terrible idea. There are many pros and cons to these options, which we will discuss in this article.


What Is Leasing?


A lease is an agreement that is only for a limited amount of time agreement. Leases last for only about two to four years. During this time, you are able to use the vehicle. The lease is for a term or period of time. When the term of the car lease ends, the vehicle you were using must be purchased or returned to the leasing company. It is not possible to trade in or sell a leased car. This gives you the ability to have a new car every couple of years. You are able to avoid long-term and costly repairs.


What Does Purchasing a Car Mean?


When you buy a car, you either have to pay for the entire car with cash or have an auto loan. If you take out a car loan, you must make regular monthly payments towards the car. When you have made all the payments, you own the vehicle. You can sell it, trade it in, or keep it. This is the best solution for those that want to keep a car long-term. However, you may have to pay for repairs once the warranty expires.


Leasing Costs


When you lease a new car, you need to obtain documentation, such as tags, title, registration, and license fees. All of this documentation has fees associated with them. In addition to those fees, you may have other up-front costs that include acquisition fees, security deposit, disposition fee, sales tax, and first month’s payment. Therefore, it is a good idea to keep your down payment as low as possible.


Purchasing Costs


When you buy a car, all of the sales include fees that include sales tax and a destination charge, which are fees required by your state or county. You may also need a title, tag, registration, vehicle inspection fee, and documentation fee. In addition, you most likely need to put forth a down payment. The larger your down payment for your car means you will have lower monthly payments. This requires a much higher up-front cost than a lease. You may be able to find a deal with zero down payment options. This may mean that you have higher monthly payments.
You may need a particular credit score to obtain these deals.


Leasing Concerns


When you lease a vehicle, you have limits on the mileage on your car. When you sign your lease agreement, you have to determine what mileage you want to stay within. The usual options are 10,000, 12,000, or 15,000 miles. If you drive over the amount, you select, when you turn in the car, you may have to pay fees for your mileage. The fee typically ranges from 10 cents to 30 cents for each mile. If you think you are going over 15,000 miles, you need a high mileage option on your lease. This will make your monthly payment higher. When you lease a car, you may think that you do not have to take care of the car with scheduled maintenance. Sometimes, they think they are going to turn in the car, so they do not have to care for it. These can be costly to you because when you turn in the car, you may be charged a large fee for excessive wear and tear.


Purchasing Concerns


When you buy your car, you are not subjected to limits. You can drive as many miles as you want. However, when you have high mileage on your car, it may reduce the resale value when you sell it or trade it in. When you buy your car, you still want to ensure you perform regularly scheduled car maintenance, like oil changes and tire rotation, to extend the life of your car. Even if you have a high number of miles, regular care reduces wear and tear on the car and helps it retain its value.

When you are trying to determine whether you should lease or buy your next vehicle, meet with a salesperson at Boyle Buick GMC to discuss your options.

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