Buying vs Leasing New Vehicles

Ready to get behind the wheel of a new car? Once you sign for your vehicle, you have an important decision to make. Should you purchase or lease the vehicle? Both options have their own pros and cons to consider. To help you decide, we will explore the advantages and disadvantages of each.

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Purchasing Pros and Cons

Buying a vehicle comes with its own pros and cons. By purchasing a car, once the vehicle is paid for, it is yours to do with as you please. Drivers can add decals, drive it for as long or far as they want, and get some of their money back when they sell or trade it in.

Now, what’s the downside of purchasing a car? Unless you have enough funds to buy it outright, drivers will need to finance for their vehicle with a loan. Whether the loan is through the dealer or a bank is up to the buyer. With this loan, the buyer will need to also pay interest, making that vehicle cost more than the advertised sticker price. These loans typically last longer than a lease would and, depending on the vehicle, may even result in higher monthly payments than a loan. If the driver decides to sell the vehicle after it is fully paid for, it is on them to either find a buyer or a dealer that offers the price they want.

Leasing Pros and Cons

What are the advantages of leasing? The appeal of leasing a vehicle comes from paying an affordable rate each month and being able to try out different models once the contract is up. This is a great option for drivers that may not have the funds to fully purchase a vehicle or want to handle the selling or trade-in of their vehicle.

Of course, it’s important to remember that when leasing the vehicle, the car still belongs to the dealership. Like renting, you pay to drive it for a specified amount of time and mileage. Exceeding the mileage or causing excessive wear and tear to the vehicle will end up costing the lessee more. Drivers cannot add any decals or do anything to the vehicle that would change its aesthetic. Those that lease are also bound to the length of the contract. Typically, leases last for around three years. At the end of the contract, the lessee can choose to purchase that vehicle at a pro-rated price or look for another model to lease or buy.

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Interested in purchasing or leasing a new vehicle? Need help deciding whether leasing or purchasing is right for you? Contact us at Sheehy Auto Stores and we will help in any way we can.