When you’re in the market for a new car, you have the option to buy or lease. There are pros and cons to both, and the choice is personal.
At Santee Ford, we are committed to getting you the best deal possible, whether you’re buying or leasing. The leasing process can be confusing for a lot of buyers, so we’re here to clear it up!
Read on to learn more about the differences between buying and leasing, including pros and cons.
Pros and Cons of Leasing and Buying a Car
Choosing to buy or lease your new vehicle is an important financial decision. While buying means you’ll own it, it costs more upfront and month to month. Leasing costs less, but you won’t own it at the end of your lease (unless there is an option to buy it out at the end). In addition to the lower cost, many people are drawn to leasing because it often allows them to drive a more expensive vehicle than they could afford to purchase.
Of course, one of the main disadvantages of leasing is that it’s less flexible than buying. Getting out of your lease early usually comes with early termination fees, while you could simply sell or trade a vehicle that you purchased. Lease agreements also limit the number of miles you can drive per year, typically 10,000-15,000 miles. For most people, this isn’t an issue, but if you have a long commute or love road trips, it could be a deal breaker.
Pros of Leasing
- Since the car is new, you’re unlikely to run into any issues. You’ll also have the latest safety features and technologies. Worry-free driving is always a plus!
- The vehicle is usually covered by the manufacturer’s new-car warranty.
- Depending on the terms of your lease, it may even include free oil changes and other scheduled maintenance.
- A lease offers the opportunity to drive a higher-priced vehicle than you might be able to afford to purchase.
- You won’t have to worry about selling or trading it in when you’re ready to move on. When the lease is up, just drop it off at the dealership and be on your way!
Cons of Leasing
- If you continually lease a car, you will always have a car payment.
- Lease contracts have specified a limited number of miles and you will be charged for going over the annual mileage allowed. Compare the number of miles you’re allowed to your yearly driving to see if extra fees will be an issue.
- You still have to maintain the car, which may include paying excess wear-and-tear charges when you turn it in.
- If you want or need to break the lease, you’ll be responsible for early termination charges. A typical lease is 2-4 years, so keep your future plans in mind when deciding if leasing is right for you.
Pros of Buying
- Your payment goes towards paying down your loan and you’ll build equity in the vehicle.
- When you want or need a different vehicle, you have the option to sell or trade it in.
- There is no limit to the number of miles you can drive.
- A car loan typically lasts 3-7 years, after which you won’t have any more payments and you’ll own the car.
- Depending on your credit score, you may have a range of financing options that could save you money on your new or pre-owned vehicle.
Cons of Buying
- Buying a car is more expensive up front, since a down payment is required. This is typically thousands of dollars, depending on the purchase price of the car.
- Your monthly payments may be higher than if you leased, depending on interest rates.
- You are 100% responsible for maintenance costs over the life of your car.
Let Santee Ford Help You in the Car-Buying Process
At Santee Ford, we’re here to help you get a good deal, whether that means leasing or buying a new car! Our friendly team will walk you through the entire process and help you weigh the pros and cons of each option. We aim to make getting into a new car as easy and stress-free as possible!
Browse our new car inventory online and visit us at 2601 Paxville Highway in Manning, SC for a test drive! At Santee Ford, our customers are family, and we’ll get you into the Ford of your dreams.
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