When you next set out for the dealership to begin looking for a new car, you will want to decide whether or not to lease or buy. If you have never given much thought to leasing, you might want to do so. There are certain advantages and disadvantages to car leasing, and it largely depends on your own individual situation. Likewise, there are times when car buying has many positives, but there are some downsides to keep in mind as well. To help guide your decision, take a look at the following information and use to help you as you begin your search.
The Value of a Car
You might think that the value of a car is that which you pay for it at the time of purchase. This s just not the case. When you buy a car, it depreciates rapidly. This only gets worse the more expensive the vehicle is. As soon as you drive it, the value can dip thousands of dollars. This means that it will be quite some time before you should really consider selling it. If you are going to hand onto the car for a number of years, depreciation might not be that big of a deal for you. If, on the other hand, you like to get a new car every few years or so, then you might want to seriously look into the possibility of leasing your next vehicle. The dealership itself will bear the brunt of the cost of depreciation, as they actually retain ownership of the car.
Don’t Forget Needed Repairs
The longer you drive a car, the more likely it is to encounter the need for a major repair. This is an expense that you will want to budget for, as outside the manufacturer’s warranty period, such repairs can get quite costly. When you lease a car, however, that ‘like new’ feeling to the car remains. This means that repairs are extremely unlikely for the duration of the lease. In the event that something were to go amiss with your particular vehicle, you will find that it is covered under warranty anyway. By the time the warranty expires, it will be time to hand the car back into the dealership.
There Are Mileage Limitations With A Lease
If you are planning to drive your new car on countless road trips every year, you will want to be aware that there are mileage limitations with a lease. When you buy a car, you can drive the car as much as you want. With a lease, however, the dealership needs to limit those miles because it needs to retain a certain value in the car in order to resell it once you turn it back it in. This is a consideration to take into account as you decide whether to lease or buy.
It is helpful to note that monthly payments are typically much lower with a car lease. In fact, the higher the residual value of the car that you want to lease is, the more likely you are to find that the monthly payments are surprisingly affordable. This means that you get more car than you could if you were to buy it outright. There are also additional expenses to take into account when buying a car, such as the down payment and interest related expenses on the loan. Take this information into account as you decide what is the best option for you.