Buying or leasing your next vehicle is a tough choice. There are pros and cons to both options and what you choose depends on many factors. The Folsom Auto Mall helps break down some of the benefits and potential drawbacks of buying versus leasing.
In simple terms, when you buy, or finance, your vehicle, when you’re done paying off your loan, you own the vehicle in its entirety. It’s yours - along with all the equity you have in it. Once your loan is paid off, you can continue driving you car with no monthly loan payments - forever! You can drive as many miles as you want. You can paint it, tint it or cover it with bumper stickers. It’s yours and you can use it how you see fit. You can sell it or keep it forever. You only costs moving forward will be regular maintenance, repairs, fuel and insurance.
A benefit of leasing a vehicle is that you typically have lower monthly payments which means you can probably afford a higher-priced, better-equipped model. Additionally, you can turn it in and upgrade to a brand new model with all the current technology and features for similar payment every few years. That means you’ll almost always have the newest model. You don’t have to go through the hassle of negotiating a trade value or selling it to a third party; turning in a lease is easy. Most vehicle warranties last the entire term of a lease and maintenance is usually covered for that time period as well. So in most cases, you don’t have to worry about service or repair costs when you lease a vehicle.
There are some drawbacks, though. When you lease a vehicle, you don’t own it. You can’t do anything you want to it. You have take good care of it or you might be charged extra. You have no equity in it and you have to stay within the agreed upon mileage in your contract. If you continue to lease, you’ll always have a car payment each month.
Buying or leasing comes down to personal preference; which benefits are more important to you? Do you drive too many miles to make a lease worthwhile? Is having the newest tech more important than having no car payments at the end of your term? Are interest rates low? Are there good lease incentives available right now?
The Folsom Auto Mall can answer all of these questions and help you get a great deal on your next vehicle. Buy or lease; new or used - we can even help with scheduled maintenance or repairs. Come see us today!