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Buying vs. Leasing

June 22, 2018 • General News

How do you know when to buy a car vs lease one?  There are so many things to consider, so we decided to make a list of the pros and cons of each option. We hope this helps with your decision!

Leasing a car: 

  • Pros: 
    • Lower monthly payment
    • You can switch it up with a "new" car every few years
    • You're always protected under warranty
    • You'll drive the car during its best years
    • You're driving a more modern model of vehicle and potentially a better car than you could own outright
    • At the end, you don't have to worry about selling it
  • Cons: 
    • There might be a driving limit on the car and you could potentially pay per mile after you've reached that mark
    • You won't be paying money to "own" the car, you'll be paying money to borrow it, knowing you'll switch it up or buy it outright at the end
    • If you don't maintain the vehicle in good condition, you'll have to pay extra wear and tear fees (this can get super expensive!)
    • If you need to get out of your lease before it expires, this could result in paying a lot of money in early termination fees and penalties all at once

Buy your own car:

  • Pros:
    • Ownership of your car
    • You can drive as many miles as you want
    • You can modify it as you choose (add your own bells and whistles!)
    • Once you pay off the car you won't have to make monthly payments anymore
    • You can re-sell it later down the road or keep it as long as you like
  • Cons:
    • Higher monthly payments than leasing 
    • Unexpected post-warranty repair costs
    • Responsible for trading/selling your car if you want a different one

If and/or when you're ready to purchase your own vehicle, come see us first! Getting pre-approved can take the pressure off when going to a dealership. Happy shopping! 

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