Buying vs Leasing a New Car
When it’s time to get a new car, you need to decide whether to lease or buy, as there are pros and cons to both options. To better prepare drivers like you in the Fort Myers, Sarasota, and North Port area for making this decision, we’re going over the advantages and disadvantages when it comes to buying or leasing a car.
Buying a Car
The number one advantage of buying a car is that you own it once it’s paid off, so you can do whatever you want with it. If you drive a lot, you may want to buy a car over leasing because you won’t have a limited amount of miles that you can drive each year.
Another advantage of buying is that you can sell the car whenever you’re ready. Buying a car can also be cheaper than leasing a new car every two to three years.
Buying a car can be expensive, though. The combination of the down payment, taxes, and fees due at signing and then the monthly payments adds up. And since the car is yours, after your warranty runs out, you’ll have to pay for any mechanical problems out of your own pocket.
The biggest con of purchasing a car is that it depreciates in value. On average, your vehicle’s value goes down 11% when you drive off the lot. And the more miles you put on it, the less money you’ll get when you’re ready to sell it.
Leasing a Car
Leasing a car makes economic sense, as the down payment and the monthly payments are smaller than when you buy a vehicle. You also could save money because in the two to three years that you drive the car, your vehicle’s maintenance is generally covered by the factory warranty.
At the end of the lease, you don’t have to haggle because you don’t own the car, so you don’t have to worry about selling your property for a portion of what you originally paid.
One con of leasing is that you don’t own the car, so you can’t customize it or tailor it to better suit you because you’ll eventually have to return it to the dealership.
Another con is the mileage restriction. You’re given a set amount of miles that you can drive in a year, typically 12,000 miles. If you use the vehicle only for commuting to work and making around-town trips, this shouldn’t be an issue. But if you take several vacations or road trips in a year, you’ll likely go over the annual limit and have to pay for the excess miles.
It also costs money to get out of your lease early, so you must keep the vehicle for the lease term to avoid paying a penalty.
Do you have more questions about the pros and cons of leasing or buying a car? Contact us at Norm Reeves Honda Superstore Port Charlotte, near Fort Myers, Sarasota, and North Port, so you can learn which option is best for your needs.