BUY VS. LEASE
If you’re currently in the market for a new car, you’ll most likely be faced with the option of whether to buy or lease. There are definite positives to each decision, it just depends on what you’re looking for. We have laid out a chart below with some pros and cons to both buying and leasing.
The biggest benefit in buying a car is that you own it. You can do what you want with it, trade it, sell it, or do whatever with it when you please.
When leasing a vehicle, you don’t actually own the vehicle. At the end of your term you will return the vehicle unless you decide to buy it then.
Another benefit to buying a vehicle is you have no limit on miles.
In a lease, your mileage is limited. Most times is it 12,000 to 15,000 miles per year. Higher mileage can be negotiated during the process, however, you may have to pay more.
Monthly payments on a loan are generally higher than lease payments since you’re paying off the entire value of a vehicle and not a percentage.
Lease payments tend to be lower, sometimes much lower, than they would be if you bought the vehicle. In a lease you’re paying for the vehicle’s depreciation.
Buying a vehicle, you will have to deal with depreciation. However, you have equity in the vehicle and can use its cash value as you like.
The plus side of a lease is that its future value doesn’t affect you financially. The con is that you don’t have any equity in the vehicle.
There are a lot of other benefits to each option, but the list above highlights some of the main ones. Whether you’re ready to take the next step in the car buying process, or for more information on whether buying or leasing would be right for you, please visit us at Casey BMW!