When it comes time to shop for a new vehicle, you are presented with what seems like an infinite amount of options ranging from which brand, model, color, package, and dealership you should buy from. One of the most important decisions you will be faced with is, should I lease or buy this vehicle? There are plenty of perks for both options, but first you must look at this decision as a lifestyle choice. If you enjoy having the latest model car in your driveway, or like the safety and upgraded fuel efficiency of new vehicles every few years, then leasing is a better fit for you. If you are not comfortable with not owning your vehicle, or tend to put on more mileage than the average driver, financing your vehicle through an auto loan will benefit you more.
Perks of Leasing a Vehicle
Leasing a vehicle may be very appealing when you are discussing numbers at a car dealership for many reasons. Leased vehicles usually require less money down, have lower monthly payments, and have a low maintenance cost. When you lease a car, you are paying for the depreciation value over your lease period. This means if you purchase a $30,000 vehicle, and it is estimated to depreciate to $14,000 over a 3 year lease, you pay for the $16,000 the vehicle loses in value over that time. Since you are only paying for a percentage of the vehicle worth, customers usually do not have to put a large amount of money down, if any, to achieve the payment they desire. Most lease purchases are over a 3 year period, which means the vehicle is covered under the warranty for the entire duration you will have the vehicle. This means less money of your pocket if something goes wrong with your vehicle. Once you have driven your car for the extent of your lease, you simply drop it back off at your dealership with no strings attached and pick out a brand new vehicle.
Perks of Buying a Vehicle
Leasing may sound appealing, but there are also perks when you purchase your car upfront, or finance it through an auto loan. If you decide to buy your vehicle, after you have made your last payment it is now owned in full by you. Those who finance their vehicle do not have to worry about going over their mileage, or turning in a beat up car at the end of a lease. Most auto loans extend over a period of 5 years, and after this you could consider your vehicle as “free” transportation. Your car may last another 7 years and all you have to pay for is gas, routine maintenance fees and car insurance. If you decide you want a new car down the road, your vehicle will still be a valuable asset if you consider trading it in. Usually the trade in value for a vehicle you own will be a quality down payment towards a new vehicle.
Impact of Leasing or Buying Your Vehicle in the Long Run
Once you decide to lease your car, you will continue to have payments until you purchase a car and fully pay it off. Over a long period of time, financing a vehicle will be much cheaper that leasing 3 cars over ten years. The downside of financing is the chance of your vehicle being totaled in a major accident, or having major service problems after the vehicle is out of warranty. Financing your vehicle will free up the money going into your monthly payments after your loan has been paid off, but also comes with the risk of surprise depreciation of your vehicle.
When it comes down to it, we recommend choosing the option that fits your lifestyle, rather than choosing one or the other because you are getting a lower monthly payment. Auto brand’s in the tri-state area have both strong leasing and financing programs and rebates, and those who live around here should take advantage of this. For more information on whether you should lease or buy, visit tomsford.com. Also if you would like more information on our current sales events or if you would like to speak with your own Internet Consultant, call this number: 732-264-1600
If you are in the tri-state area and would like instant credit approval on a vehicle from us at Tom’s Ford to help decide whether you should buy or lease, use our quick and easy pre-approval tool below that allows you to autofill your information with facebook.