Long gone are the days when your only options for getting a new car was to pay cash or take out an auto loan. Leasing cars used to be an option that was reserved for corporate customers or luxury car purchasers. Nowadays, almost anyone is able to lease a new car and there are many benefits to doing so. Deciding whether or not to buy or lease a new car is a big decision that shouldn’t be taken lightly. To make the decision-making process easier, below are going to be some of the pros and cons of both leasing and buying your next new car.
Pros Of Leasing A New Car
•Leasing offers customers a much lower monthly payment versus buying with little or no money needing to be put down.
•You will be able to afford a nicer car for less cash.
•Less out-of-pocket expenses for repairs because a leased car is still under a vehicle’s factory warranty.
•You will be able to transition easily to a new car every two to three years.
•There will be no trade-in hassles when you go to get a new car like when you buy a car.
•People who lease a new car will typically pay less in sales tax.
Cons Of Leasing A New Car
•You won’t own the car when the lease is up. However, you will have the option to buy it if you want to.
•You are limited in how many miles you can drive a year unless you purchase extra miles for your lease term. Many people do not go over their mileage.
•You might end up paying more in the long run if you continue to lease a car instead of buy one.
•If you decide to terminate your lease contract, it could cost you a fee to terminate.
Pros Of Buying A New Car
•You are able to make modifications to your car if you choose to.
•You have the ability to spend less on the car over time.
•There are no mileage restrictions when you own a car.
•There is more flexibility with owning a car and you can sell it whenever you want.
•A car you own can be used as a trade-in when you go to purchase another car.
Cons Of Buying A New Car
•Buying a car requires a much higher down payment to avoid being upside down in your auto loan. This means that you will owe more than the car is worth.
•Buying a car means having much higher monthly payments.
•Once the warranty expires, you will have to cover any repairs or maintenance out-of-pocket.
•You will be faced with more problems when you try to trade in your car for another.
•A car depreciates quickly and you will have more of your money tied up in your car and payments.
For many people, the benefits of leasing a new car far outweigh the benefits of buying. Leases are a great option for knowing and predicting your total cost of ownership during the two or three years that you have it. While you still need to do routine maintenance on your leased car, it will still be covered under the factory warranty and will cover bumper-to-bumper repairs. One of the biggest benefits that most people find when leasing versus buying a car is that you will always be able to have a newer vehicle with all of the newest safety features and high-tech devices.