When you are looking to buy a new car, you might be deciding between buying or leasing a car. When you lease a car, you basically are renting the car from the dealership by paying monthly payments, then returning it at the end of the leasing contract. At that time, you decide if you want to buy the car and pay what you still owe on it, or if you want to lease another car. Here are some things to consider when deciding between leasing or buying a car.
You Get More Car For Your Money With Leasing
A benefit to leasing a new car is that you typically get more of a car with the amount of money you spend. This is because the required down payment and monthly payments are often lower. You are not putting money toward the final sale of the car, so the leasing payments are frequently lower than if you bought that car to own one day. If you want a new car with all of the advanced features, you might find that it is more affordable to lease instead of buy.
Buying Allows You to Build Equity
Unfortunately, when you lease a car, you aren't building any equity on that car. It is often returned after the lease contract, so you aren't paying toward a car. It is closer to renting a car where you are paying monthly payments just to use the car. However, if you want to build equity where you either have your own vehicle or a vehicle you can someday sell for money, buying the car is a better option.
Leasing Avoids the Necessity For an Extended Warranty
When you decide to lease a car, you usually return it and either buy or lease another car after a few years. It is often the period of time that a traditional manufacturer's warranty would last. During this time, some repairs involved with the car are covered by the dealership. Since you are returning the car for another one, you don't need to pay extra for an extended warranty. When you buy a new car, you might want more repairs covered, so this standard warranty may not be enough for you.
You Don't Worry About Mileage or Wear With Buying
While there are some benefits in regards to the warranty, you might have to pay extra fees and penalties based on the mileage you drive or wear over time. The car you lease is not your car, so you need to be gentle with it. You could be paying big if you get wear and tear or do significant damage to the vehicle.
For more information, contact a business like Jack Burford Chevrolet.