To be or not to be? A good question, though this may be a difficult question to answer quickly. So let’s discuss buying and leasing. After all this is an autoblog. There’s a lot to consider on this topic so lets get to work.
Leasing 101
Understanding leasing can be a bit of a challenge due to all the different plans out there. As you review some of the leasing plans, keep your eyes on things like: Capitalized cost (the price of the vehicle), Residual Value (the expected value at the end of the lease), and Money Factor (the interest rate you’ll be paying). While there will be other fees, the easiest way to get an idea of how much a lease will cost you is to take the capitalized cost and subtract the residual value.
What does it mean to buy and finance a vehicle? Well, as Pinckney Chrysler Dodge Jeep Ram, Pinckney, MI, explains: buying a vehicle means it becomes your property. Leasing is more akin to renting since you always end up returning it. When you lease a car, there will be a down payment followed by monthly payments.
Why Lease?
Why would you lease? Well, leasing will generally be the cheaper option (vs, buying) because you’re not paying off the whole car. This comes in the form of lower monthly rates, a lower down payment, and lower taxes.
Why Buy?
Why would you buy? The biggest thing for most people when it comes to buying a car is the fact that you would actually own it. And with ownership comes with perks. Some of these perks include not having mileage restrictions, customization possibilities, and a finite number of payments since once you pay it off it’s yours to do with as you please. Additionally, a car you’ve bought can be used to supplement your next car purchase as a trade-in, which you can also do whenever you please unlike a lease that basically has a return by date attached.
Its Up To You!
So which should you do? Well that’s still ultimately up to you. Take into account how much you have to spend, how long you hope you have the vehicle you’re interested in, and not just what you plan to do with it. As you might imagine, there’s no simple, universal answer, but by weighing the options that each offers you’ll be able to find the one that will work best and make the most sense for you.
