Buying Versus Leasing – The Facts
Should I buy or lease? We’ll help you get to the right choice.
If you’re preparing to add a new car to your household, you have a couple of options on how to go about it. At MyCarBroker, we offer both buying and leasing options to ensure that you find the right car for the right price. Because buying and leasing have distinctive pros and cons, it’s important to learn about the benefits of each before making a decision. Take a look at the advantages and disadvantages of both to decide which choice is the best fit for you.
Benefits of Buying Purchasing a vehicle comes with a host of benefits. To start, you have greater freedom: you can paint the vehicle, add aftermarket accessories, and make other cosmetic decisions. You are never limited by mileage restrictions, enabling you to drive without worrying about overage penalties. In the long-term, purchasing, rather than leasing, is generally more economical; you will typically spend less on a single loan than you would leasing numerous vehicles. As the owner, you also have the option to sell your vehicle whenever you like.
Drawbacks of Buying There are a few downsides associated with purchasing a car, and it’s important to consider them before making your decision. As vehicles age, they generally require more repair and maintenance, racking up costs in the process. After your warranty expires, you are required to pay for any repairs out-of-pocket. When it comes time to sell your car, the hassle of the process falls to you. Vehicles are a unique investment because they depreciate in value over time, so you will never fully regain your initial investment.
Benefits of Leasing Leasing provides certain freedoms you can’t get when purchasing a vehicle. You can enjoy the flexibility of driving a new car every few years. If you’ve had your eye on an expensive model but don’t want to part with tens of thousands of dollars, you can lease it without spending money on the full purchase. Since most vehicles are covered under a manufacturer’s warranty, you won’t have to stress about costly repairs. Leases are favored for their simplicity. At the end of the lease term, you simply turn over your vehicle and, if you desire, replace it with a new model.
Drawbacks of Leasing When you lease a car, you are not the owner. Some people feel this makes lease payments less appealing than loan payment, as you do not have ownership at the end of the term. Leasing is a good option if you are looking for a short-term commitment, but it makes less sense if you want the same car for the foreseeable future. Most leases also come with restrictive terms. Mileage limits are problematic if you typically drive long distances, and you could face a hefty end-of-year penalty should you go over. You can also incur charges if the car is returned at the end of your lease term with excessive damages, forcing you to spend money on maintenance and repairs. In the end, the choice of buying or leasing comes down to your preferences and needs at the time. Here at MyCarBroker, we work with you to put you in the ideal car with the right financing option.