One of the biggest concerns people have when getting a new car or SUV is weather they should buy or lease the vehicle, which is better? Anyone who has ever purchased a car has had this question. Is there a right answer, who knows, it’s all up the the individual and their personal situation. Lease and buy loans are really 2 different ways to finance a car. When you lease you finance the use of the car, when you buy you finance the purchase of the car. Each way has pros and cons. What the buyer needs to do is figure out what is important to them.
The biggest thing a buyer needs to know is if they want to keep a vehicle for a long time or do they want to own something new every 2 or 3 years. Also, leasing does have lower payments but the drawback is that you don’t own at the end of the term. Is it more important to have lower payments but no ownership or have higher payments and be able to keep the vehicle for as long as you like. This is a decision you have to make. Also, leasing generally caps the amount of mileage you can drive in a year, if you go over the penalty can get expensive.
When it comes to understanding car leasing there are several items that come into play. Buying and leasing are different. When you buy you pay for the entire cost of the vehicle no matter your driving habits and the mileage you will drive. Also, you have to pay sales tax on the whole purchase price. When leasing you only pay for a portion of the vehicles price, this is the part you use while you’re driving it. You pay tax only on the part you use not the whole purchase price (this is called use tax). Also, at the end of a lease you have the option to purchase for the depreciated value.
You are probably asking yourself which is better, car leasing or buying? That really depends on what is important to you. If you like to change vehicle every 2 to 3 years and don’t drive an inordinate amount of miles and like to keep your monthly costs down then lease.If higher monthly payments are not an issue and true ownership of the car is important, and if you plan on keeping the vehicle for a longer period of time, then buying is the way to go.
When it come to you having to make this decision contact me and I can help you find the right car or SUV and get you a competative price. We can then figure out how you want to purchase the vehicle wheather it be cash, buy or a lease.