Leasing a car can be tempting because it lets you drive a new or even a luxury car for a fraction of the original price. However, buying a car is the more practical long-term option. Which one is right for you? Here’s everything you need to know about the decision-making process.
Financing a Car
When you finance a car, you’re investing in owning that vehicle outright in the future. You’ll make fixed monthly payments towards paying back the auto loan. Once that loan is paid off, the car will be in your name and you can choose how long you want to keep it. There are no restrictions about what you can and can’t do with your vehicle during or after paying back the loan, either.
Leasing a Car
When it comes to leasing, however, you’re renting a vehicle from a dealership for the “lease term,” typically about three years. You will only be paying for the cost of depreciation over that time period rather than the full price tag. However, you’ll probably be restricted from going over a certain mileage and required to adhere to a strict maintenance schedule. All of these things will be negotiated through a contract that’s legally binding for the duration of the lease term. Violating something in the agreement can result in fees later.
Why Buying is Better
If you’re purchasing a vehicle for the long-term, buying a car - even if you need to finance a loan on it - is a better investment. You won’t be required to return the vehicle by a certain point or stay under a certain number of miles, and you can service your vehicle wherever and whenever you want. Plus, if you buy a used car, you won’t have to deal with the initial drastic rate of depreciation, so your vehicle will hold its value a lot longer.
If you want to learn more about the financing process, swing by Village Motors of Conover and, we’ll get you up to speed.