Car Lease vs. Purchase

December 12th, 2013 by

car-lease-vs.-purchase

When considering a new car, one major decision you have to make is whether you want to lease or purchase your new car. We’ll take a look at some of the benefits and drawbacks of each option, both financial and otherwise.

Leasing

  • With leasing, your monthly payments will usually be lower than it would be for financing the same car.
  • Another benefit is you will often avoid many maintenance and repairs costs since the car will stay under warranty.
  • Many people choose to lease a car so they can drive a new car every few years.
  • When you lease a car, you avoid the first-hand cost of depreciation and you usually have the option to purchase your car at the end of the lease for a great price.
  • One of the downsides to leasing is higher insurance premiums. You also have limited mileage you can put on the car and if you go over, you will be charged per mile.

Purchase

  • At the end of your loan, you own your car outright and have built up equity in your car.
  • You take the full brunt of depreciation
  • Considering purchase price, depreciation, and resale value after 6 years, purchasing new will ultimately cost you less money.
  • You can sell your car whenever you want.
  • You can make modification to your car.
  • You can drive as many miles as you want.

In the end, you have to choose the option that is right for you. Weigh all the factors, how much money you have to spend, do you want to drive a new car more often, and more. Visit us at Carter Chevrolet and we’ll help you find the option that works best for you.