Buying vs Leasing – Which is Better?
It’s not unusual for car shoppers to be undecided about whether to purchase or lease their new vehicle. Both solutions can make sense, and much hinges on your personal circumstances and preferences. The key factors include your budget, long-range plans and lifestyle. To decide on how to finance your vehicle, you’ll need to analyze the cash flows of both choices so that you can reach an intelligent choice that’s best for you.
Benefits of Buying
Purchasing a vehicle might be best if you like to drive a car until it stops running. Today’s cars last for decades when you maintain them responsibly. Parents might be motivated to drive their cars for several years and then giving it to a child. Buying also is smart if you like to sidestep financing altogether and just pay cash rather than use credit.
Buying a vehicle includes these benefits:
– Maximum value via long ownership
– Residual value when you trade it in
– You can sell the car anytime
– No charges for mileage or wear-and-tear
– Sales contract is easy to understand
– You might get a special financing deal with a low APR
– Ownership pride
Benefits of Leasing a Vehicle
Leasing a car is great for shoppers who want to drive a new vehicle every few years. If your work requires driving clients around, say, for Uber or for selling real estate, you can benefit by leasing an impressive premium car that would be too expensive to buy. To qualify for tax deductions while avoiding fussing with depreciation, many businesses prefer to lease all vehicles that they use for business. Leasing can accommodate your budget via lower monthly payments and smaller down payments on your car.
The benefits of leasing include:
– Access to the latest technologies
– Avoid trade-in hassles
– Businesses get tax benefits
– Expensive cars become more affordable
– Sales tax paid only on the financed amount
– Smaller monthly payments and down payments
– Warranty extends over the term of the lease
We invite you to visit our dealership and speak to an expert in our Finance Department. You can discuss your personal circumstances and get a good idea as to whether buying or leasing is best for you.