When you’re looking for a new vehicle, you may not know whether buying or leasing is a better option. Each choice has its pros and cons, and if you approach the decision in an objective way, you can easily decide which option suits your needs and your financial situation.
Buying a Vehicle
Most new car purchases from Stirling Honda require some type of financing, but if you can afford to pay in cash, you’ll get several distinct advantages. The biggest benefit is that you’ll take ownership immediately, saving several hundred or even thousands of dollars in interest. You’ll be able to sell the car, trade it in, move it out of state, and drive as much as you wish without worrying about excess wear charges.
However, buying a car does have some drawbacks. The amount you pay each month will be higher because you’re paying for the cost of the car, interest, fees and taxes. Upfront costs are higher as well; you’ll pay a bigger down payment, and higher registration fees.
Leasing your Next Car
Leasing a vehicle can be more expensive in the long term, but it does have some advantages. You’ll pay a smaller down payment and your monthly payment will be lower because you’re paying for depreciation over the lease term rather than all at once. If you lease, you can get a new vehicle every couple of years without being saddled with a decreased resale value. Taxes paid on a lease are lower, because you’re only taxed on the amount you pay during the lease term.
Leasing a car, truck or van does have many benefits, but there are some disadvantages to consider. A lease term includes a mileage limit; exceed it, and you’ll be charged a fixed rate for every extra mile. Mileage limits can impede your use of the vehicle, and you’ll pay for excess wear and tear to the interior and exterior of the car. Leased vehicles cost more to insure because policies tend to include “gap” coverage, which pays the lease in the event the car is totaled.
Deciding whether to buy or lease your next car is a matter of your budget and your lifestyle. If you drive infrequently and want to avoid ownership hassles, leasing may be appropriate. However, if you want more freedom and want to save money over time, buying from a Dealership in Longview, WA is the right choice.
