When it comes to purchasing a brand-new car, it can be a thrilling experience. However, it is also a significant financial investment, so you need to be equipped with all the necessary information that will help you make a well-informed decision all the way around. For instance, you have two options when getting a new car: you can buy, or you can lease.
Which one is the better option? Well, it all depends on your individual situation. It helps to be familiar with your driving preferences and your current (and future) financial situation, as these two factors will help in making the right decision for you and your family.
When to Buy
As a general rule, you will benefit the most down the road by purchasing (or financing) the vehicle. This is particularly true if there is a special offer with incredibly low interest rates being presented by the car dealership.
When you purchase a car, you will need a down payment, and you can also expect a higher monthly payment, though neither of these expenses will last forever. Once the car is paid for, it will be yours until you decide to sell it or trade it in on another vehicle.
When to Lease
For individuals who like to get a brand-new car every two or three years or individuals who do not have the finances available for a hefty down payment, leasing is actually a good option. Generally, vehicle leases do not require a down payment. Instead, you are simply required to make a monthly payment—lower than that of the payment if you were buying—for the term of the lease.
Though you will still be fully responsible for all auto-related maintenance, you will be able to turn the vehicle into the dealership at the end of your lease period and get a different vehicle by signing a brand-new lease. By going into a lease agreement, you can save money and enjoy brand-new cars for less money for years to come.
When it comes down to deciding whether you should buy or lease your next vehicle, it all comes down to personal preferences and individual situations. What may work for your sibling, best friend, or colleague may not necessarily work for you. If you would like to learn more about lease agreements or just outright buying new cars for sale, talk to salespersons or the finance department at a local auto dealership.