Buying a vehicle can be a stressful event. There is a lot going on and you just want to make sure you are making the best decision. If something goes wrong, it could end up costing you a lot of money. Hopefully this will give you some guidance on the path you would like to take in getting a new car.
When in the market for a new vehicle, you have to ask yourself if you are going to buy the car or lease the car. There are pros and cons to both options. Below you will see a breakdown of the pros and cons for each option.
Leasing
Pros
You will usually have much lower payments than you would financing the car
The down payment will be a lot less or there may not be a down-payment at all
You get the freedom to switch vehicles every two or three years depending on the lease
You do not have to worry about finding a buyer for your car when the lease is up
No trade in hassles with the dealership
Just get a new lease and turn the old leased car in. Simple
Sales taxes are less on a leased vehicle
Cons
When the lease is up, you have no ownership of the car
-You must turn the car back in to where you got it from
-You are limited by the amount of miles you can drive
-Typical lease is around 12,000 miles per year
-1,000 miles per month
-The leasing contract may be very confusing for people who don’t understand leasing terminology
-If you were to keep the same car for years, you would actually end up paying more over time than you would if you were to just buy the car
-If you want to terminate the lease in the middle of the contract, you will be charged a hefty termination fee.
-You cannot make any changes to the car
Buying/ Financing
Pros
If you buy a car, you can do whatever you want with the car. You can customize it to your liking
It is cheaper in the long run to buy the car
The vehicle is yours
There are no limits as to how much you can drive the vehicle
You have the option to trade in the vehicle when you are looking to purchase your next vehicle
You could sell the vehicle whenever you want. You do not have any agreement holding you to that vehicle for a specific period of time
Cons
-You will have a down payment and if could be a lot depending on the car you are looking at
-If you are financing the car, the monthly payments will be more expensive than a lease monthly payment
-The dealership where you got the car from is not responsible for repairs and maintenance. You are.
-The value of a car when you drive off the lot, goes down substantially. It is called depreciation
-When you are ready to get your next car, you can trade this one in. The trade in process can be a hassle and some people do not want to add more hassle to an already stressful process.
If you are in the market for a new car, come by and see us. We would be happy to go over all of the options available to you. We can explain what would be better for you individually. Not everyone is the same so we will do our best to make sure you are doing what is right for you. If you have any questions about the car buying process you can always give us a call or come into the dealership to ask questions. Visit poagechevrolet.com to see our lease deals. To see if you qualify for financing, click here. If you are in the Wentzville, Foristell, O’Fallon, Lake St. Louis, or Warrenton areas. Feel free to stop by.
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