Leasing vs Buying | Shively Motors in Shippensburg & Chambersburg, PA
Is it Better to Lease or Buy a New Vehicle?
SHOULD YOU LEASE YOUR VEHICLE?
- You have lower repair costs because you are under the vehicle’s included factory warranty.
- You can more easily transition to a new car every two or three years.
- You can drive a better car for less money.
- You pay fewer sales tax.
- You don’t have trade-in hassles at the end of the lease.
- You have lower monthly payments with a low or no – down payment.
- Your mileage is limited based on the lease terms and contract – if you go over the mileage you will most likely have to pay for it.
- You don’t own the car at the end of the lease (although there is always the option to buy).
- You may find it costly to terminate a lease early if you’re driving needs to change.
- You may find lease contracts confusing and filled with unfamiliar terminology.
Should You Buy Your Vehicle?
- You can use the car as a trade-in on the next car you buy.
- You’ll save money over the long term if you buy a car.
- You can modify your car as you please.
- You can drive as much as you like. There’s no excess mileage penalty.
- You have more flexibility since you can sell the car whenever you want.
- Your monthly car payments are higher than lease payments.
- You must pay a higher down payment to avoid being upside down in the loan (owing more than the car is worth).
- You face possible trade-in or selling hassles when you decide to get your next car.
- You’ll have more of your cash tied up in a car, which depreciates in value.
- You’re responsible for repair costs once the warranty expires.
Lease vs Buy Summary
Briefly, leasing makes it easier to get more car for less money. This is because you only pay for the use of the car for two or three years, instead of paying for the vehicle itself. Buying, on the other hand, frees you from the restrictions involved in leasing, such as mileage caps. The car is yours to do with as you wish.
Ultimately, it’s up to you to weigh the pros and cons, determine your needs and decide which choice best suits your lifestyle.