When you’re in need of a new car, a number of thoughts rush through your head at once. What color? 2 or 4 doors? AWD or 4WD? And while some of the main factors in buying a car can be these, understanding what type of purchase is also very important. Between buying and leasing your car, a few positives are within each category — but which one is better? Below are a few things to look out for, and some factors that might help you make a better decision.
Buying
Some of the obvious perks come into play when you talk about buying a car — like that fact that after your payments, you own it! This is definitely for those who also look forward to having a car for a number of years to come, passing it to relatives and more. One of the drawbacks to owning a car is the potential for maintenance when the warranty runs out, but there is the opportunity to purchase extended warranties for longer periods of time. Typically, your payments will be higher than a lease, but again, the car is eventually all yours!
Leasing
For those who love upgrading and never dealing with a warranty hassle, leasing is likely for you. Some of the positives include having a new car every few years, which also gets you the best tech and accessories. The payments are typically lower with a lease, however the drawback here is that you don’t get any of the money spent on a lease back, unless you buy the car outright. Additionally, leasing can be a hassle when you’re giving it back, due to damage. The dealer will typically charge you for things like dings, scratches and dents — as well as overage charges on your miles.
Whatever you decide to go with, it’s important to understand that there are a ton of options that you can choose from when it comes to your next car. Used purchasing is always an option, and that sometimes is a great deal in itself, saving money on the new price, retaining a warranty, and owning your car at the end of the payments!