Buy vs. Lease
If you are looking to add a new car to your life, you have a big decision to make. Do you want to buy your car through a loan or take it home with a lease contract? We will explore some of the pros and cons of each option to help you decide which option is right for you.
If you decide to buy your new car, the most popular option, you will likely take out a loan to finance the purchase. You will make monthly payments until the loan is paid in full. When that happens, the vehicle belongs to you outright and you can do whatever you want with it. Once you take the car home, you have no restrictions on how much you can drive or if you want to make any modifications.
However, buying does come with a few drawbacks. In general, your monthly payments on a car loan will likely be higher than they would be if you took out a lease on the same car. In addition, you may need a sizeable down payment up front.
More and more car shoppers are considering leasing. This is a great way to take home a new car without having to buy the vehicle outright. Since lease contracts typically last three years or less, it gives you the freedom to upgrade to a new car with the latest technology every few years.
Since lease payments are only based on a portion of the car’s value, your monthly payments should be more affordable than a loan payment. Because of this, you might be able to upgrade to a larger vehicle or move up a couple of trims to get more advanced features.
Lease contracts do come with a few stipulations. You are limited on the number of miles you can drive. If you exceed that limit, you will have to pay. In addition, you could be charged for any excessive wear and tear.
For more information about buying and leasing, or to find the perfect new car for your lifestyle, visit us at Jack Matia Honda.