Reliable transportation is essential to working, running errands, and visiting fun places. Owning a car is the easiest way to always have a way to get around.
It’s exciting to purchase a brand-new car. You’re the only owner. You’re not inheriting anyone’s problems and you can get exactly what you want. Cars are expensive, and you want to find one that fits your budget as well as your needs. Before searching for a vehicle, it’s a good idea to think about whether you want to buy or lease.
These are the most common ways people obtain a new car, and each has its advantages and downsides.
Things to Consider About Buying
As you begin looking for new cars for sale, consider the upsides and downsides of buying. When you have finished making all the payments, the car is yours. You can keep it, sell it, or trade it in. Some other things to think about include:
- You have no limits on mileage, you can drive as much or as little as you like. Keep in mind that higher mileage affects resale value.
- Monthly car loan payments are generally higher than lease payments, but they go toward the price of the car, and you are building equity.
- You end up owning the car. This is a big advantage.
Typically, the term of an auto loan is 3 to 7 years. Shorter terms mean higher payments and vice versa. You could end up paying for a considerable length of time.
Things to Consider About Leasing
Leasing is a popular option and works well for some people. Like buying, there are important things to consider about leasing.
- If you decide to end the lease early, you will have to pay an early termination fee, which can be expensive.
- Monthly lease payments are generally lower than loan payments. You are paying for the depreciation of the car rather than the vehicle itself.
- At the end of your lease, you can bring the car back and lease a new one. Some leases have an option that puts your lease payments toward the price of the car and lets you finance and buy it at the end of the lease.
- Leases generally have an annual mileage limit of 10,000 to 15,000 miles. They often charge fees at the end of the lease for going over mileage and excess wear and tear which is at the discretion of the dealer.
- Leases generally run for 2 to 4 years.
People who like driving a late-model car with low mileage tend to prefer leasing as they can get a new vehicle at the end of each lease.
Ask Questions
When visiting dealerships, ask detailed questions about how they finance and lease cars. This will help you make the right decision.
Choose Carefully
If you are in the market for a new car, there are many options. In addition to body styles, makes, and models, you can choose between buying and leasing. Get all the information you need and make an informed choice that fits your budget and needs.