Is it Better to Lease or Buy a Car?
If you’re dreaming of a new Volkswagen, Mazda, or another model, you may wonder, “Is it better to lease or buy a car?” The finance team at Kempthorn Motors in Canton gets that question often, and we’re happy to help. When comparing leasing vs. buying a car, the best choice depends on your financial situation and driving needs. Below we will help you decide if you should buy vs. lease your next vehicle, and contact us with any questions.
Buy vs. Lease a New Car: Long and Short-Term Costs
- Car Leasing Benefits: If you’re keeping a close eye on your budget, and most people around are, leasing offerslower monthly payments. You’ll also save money on repairs, taxes, and your down payment when you lease vs. buy a car. Plus, your monthly car payment won’t increase much if you get a new lease every few years.
- Car Buying Benefits: You’ll eventually eliminate your monthly payment, which means more peace of mind! Buying a Certified Pre-Owned vehicle can be more affordable than leasing a new one because you’ll spend less in the long term than a driver who continually leases. Remember, though, that repair costs typically will increase the longer you own any vehicle.
The Bottom Line: Most drivers only keep their vehicles for about three years and like to trade them in for one with the latest features. If that sounds like you, leasing vs. buying a car is a good choice.
Buy vs. Lease a New Car: Mileage Restrictions
When considering, “Is it better to lease or buy a car?” think about how many miles per year you typically drive.
- Buying a car means you can rack up as many miles as you want.
- Leasing a car requires means you must stay within certain mileage limits per year, and if you go over the mileage restrictions, you’ll have to pay a fee at the lease end.
The Bottom Line: A lease is best if your daily commute to is fairly short. But, if you go on long road trips, you should buy vs. lease a car.
Buy vs. Lease a New Car: Total Ownership and Customization
- When you buy a car, you can do whatever you want to it with accessories and customization. But you should always check first to ensure it won’t void your warranty.
- When you lease a car, you must keep it very close to its original factory condition because the auto dealership still legally owns it, and they’ll need to resell it when your lease is up.
Is it Better to Lease or Buy a Car?: Other Things to Consider
- Financing a vehicle offers more flexibility. When you buy your car with an auto loan, you can sell or trade it anytime or refinance to a lower interest rate.
- Leasing is easier. With leasing, you need to take good care of the vehicle while you drive it, and when your lease term is up, drive it back to the dealership and select a new model. You aren’t responsible for maintenance, and you always have the option to buy it.
The Bottom Line: The ease of leasing is a key benefit for many drivers. But if you are willing to maintain and resell your car, the funds you get for trading in the vehicle you own can help offset some of the future ownership costs.
Explore Your Financing and Leasing Options at Kempthorn Motors
If you still have questions about leasing vs. buying a car, contact the finance team at Kempthorn Motors. We will help you explore all your options today. Please review our new vehicle specials and apply for financing online to get started. We’re here for you!
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