Anyone who has ever shopped for their next vehicle ultimately comes to the same question: Do they want to buy it or lease it? Both options offer their pros and cons. To make the best decision for yourself, you need to know everything there is to know about both options and how they would impact your specific situation. To help make the shopping process as easy as possible for you, below is some information you can use to help you decide between buying a car and leasing one.
What Buying a Car Entails
First, let’s cover the process of buying a new car. Just like with any other buying transaction, you spend money in order to buy the car you want. However, most of us don’t have the amount of cash necessary for a new car lying around. If this is you, then you need to find an alternative method for buying the car, which typically comes in the form of a car loan.
With a car loan, you take out a loan for the amount of the vehicle and then make monthly payments on this loan over the course of a few years. Due to interest, you’ll end up paying more than the loan amount but taking out a loan allows you to get the car you want now and make reasonable payments toward the loan over time.
To get a loan, you can either work with a local bank or credit union. If you don’t have a preferred location, Huffines Chevrolet can help you secure a loan through our finance center. In fact, doing it this way often comes with a lower interest rate than your own bank. Once you complete the finance application, secure a loan, and sign the paperwork, the car is yours.
The Car Leasing Process
The alternative to buying a car is leasing it. Leasing a car is like renting it and only paying for the amount that the car depreciates in value. Cars lose their value over time and as they accrue miles. For example, a car that was initially worth $20,000 may be worth $16,000 after a few years and with a few thousand miles on it.
With a lease, you agree to pay the amount that the car is expected to lose in value. Leases typically last anywhere from 3 to 5 years. At the end of the lease, you return the car to the dealership. As you are only renting the vehicle from the dealership, it is expected that you will keep the car in good condition. In addition, you will likely have a cap as to the number of total miles you can put on the vehicle over the course of the lease.
The Benefits of Buying a Car
There are several benefits that come with buying a car over leasing it. The primary benefit is that you are the owner of the vehicle. If you end up keeping this vehicle for many years, you get a lot more value out of the money you spent on it. Those who choose a lease must find another vehicle at the end of the lease, which essentially means they are never finished making car payments. With buying a car, once you pay off the loan, you don’t have to worry about car payments.
Owning the car also means you can treat it as you wish. You don’t have to worry about going over a mileage limit, and you can make any adjustments or improvements to the car that you like. For example, if your new car doesn’t come with a remote starter, you can have one installed yourself since you own the vehicle.
The Benefits of Leasing a Car
There are a few reasons that someone may choose a lease over buying a car. For starters, leases often have smaller monthly payments. This makes them easier to afford on a monthly basis, even if you end up paying more for the vehicle over time.
In addition, going with a lease allows you to continually drive the latest models. Once your lease is up, you can return it and take out a new lease on the latest model. With the rapid advancement in technology, cars often offer some great new features after just a couple of years.
Finally, lease owners typically don’t have to worry as much about car maintenance and repairs. Cars experience more problems the older they get. Since you are only driving the vehicle during its first few years, you are less likely to have issues with it. This can not only save you money but also help you avoid some stress.
Deciding Which Is Right for You
If you’re not sure which option is right for you, you’re not alone. It’s a tough choice, and everyone’s situation is different. To help you decide, first think about your financial situation. Would you prefer a lower monthly payment? If so, you might want to consider a lease. However, if you want to eventually not have a car payment, then look at buying the car.
Then, take into account your driving habits, such as how much you drive or if you like to customize your car. Both of these things will help you pick between a lease or buying the car.
Let Huffines Chevrolet Help You Decide
Still not sure which method is right for you? No problem. The team at Huffines Chevrolet in Plano, Texas, is here to help. We can discuss your situation with you, learn about what you’re looking for, and show you what types of vehicles are available. From there, we’ll help you weigh the pros and cons of both buying and leasing to help you make the right decision. We’ll also tell you about our latest specials to see if one of them helps you decide.
To get started, simply contact us today. We are always available to answer any questions you may have or schedule a time for you to visit our dealership. Getting your next car should be an exciting time, so don’t let the decision between buying and leasing weigh you down.
Image from Pixabay by geralt