If you’re in the market for some new wheels, you may be confused about leasing. Is it better to lease or buy your next car? There are passionate arguments on both sides, so you have to take your needs, wants, and budget into account while making this important decision. Below are some pros and cons of leasing– we’ll leave it up to you to decide which is best for you.
PROS of Leasing a Car
- You’ll get a brand new model which may be out of your price range if you were to purchase the vehicle.
- Your monthly payments will likely be lower than if you purchased the same make and model.
- Because it’s brand new, it shouldn’t require maintenance or repairs—saving you both time and money!
- You could drive a new car every 3 years if you lease a new vehicle when each lease ends.
- Leasing may have tax benefits for business owners.
CONS of Leasing a Car
- You’ll have to put down a large down-payment.
- You pay more in property taxes when you first get the car, versus excise taxes on a purchased car.
- You’ll be limited with how many miles you can drive each year, or you’ll have to pay a fee at the end of the lease to cover the extra mileage.
- You’ll have to be extra careful not to get any dings in the body or do any accidental damage such as spilling a drink or getting a cigarette burn inside the car. Why? Because at the end of the lease you have to pay for any “wear and tear” damage.
- You pay disposition fees when you turn the car in.
- You don’t own the car. At the end of the lease, you bring it back to the dealer, and all the payments you made disappear into thin air.
Free Help From Auto Advisors
Let’s face it—car buying can be confusing. Our Auto Advisors are here to help make the process easier! They are here to help you (for FREE) and they can eliminate showroom and lot visits, high pressure sales tactics and an expensive trip to the dealership finance office.
Get Preapproved for an Auto Loan
If you’d like to buy a car instead of lease it, it’s a good idea to know what price range fits best with your budget before you start looking. Save time and know exactly where you stand by getting preapproved for your auto loan in advance! Merrimack Valley Credit Union and Bridgewater Credit Union, a division of Merrimack Valley Credit Union, are trusted lenders and can often compete with (or offer a better rate than) a dealership!