DO you have any confusion between buying vs leasing a car? know the benefits of leasing and buying a car to make an informed decision.
Buying a new car is always an exciting experience because of how many options you have. Do you want something that can hug the turns on the road or conquer the wilderness? Are you looking for something practical you can depend on for work and chores, or do you want
something flashy for fun out on the town?
Hidden within all these choices is one that most people don’t spend as much time thinking about but can impact your enjoyment all the same, namely, whether you’ll lease or purchase your new ride.
Choosing between buying vs leasing a car options is totally up to you, but you may not be aware of all the pros and cons each one has to offer. For instance, your monthly payments will be lower overall if you lease because you’re only paying for the depreciation during the term.
You’ll also save money on taxes because you’re being taxed only on the monthly payments. On the other hand, most leases restrict you to 12,000 miles per year. You’ll likely need to pay a penalty if you go over this allotment.
Any damages to the vehicle that are not repaired before the end of the lease will also result in penalties. If you decide to purchase the vehicle outright, you can expect your monthly payments and taxes to be higher.
You’ll also be responsible for any repairs or maintenance that fall outside of the original warranty if you have one. However, you’ll have the freedom to customize your car any way you see fit, and you’ll be able to sell or trade it at any time without paying any penalties.
Choosing between purchasing and leasing won’t have any effect on your new car’s gas mileage, tires, available seating, or sound system, but it can have one on your wallet. To learn more about, take a look at the accompanying resource.
Infographic created by O’brien Toyota