When it comes to buying your next vehicle there are so many different options out there in the market! There are different programs when it comes to purchasing a vehicle, whether you’re buying or leasing. Here are some pros to both!
Buying:
- More term flexibility - you can choose to go anywhere from 36-84 months (depending on the structure of the deal)
- Customize the car - no restrictions on add ons to the car
- Easier to spread out negative trade equity over longer terms.
- Sense of ownership - at the end of the loan, the car is yours.
Leasing:
- Lower monthly payment - with a lease, you only pay for the time you use the vehicle, instead of the full purchase price.
- Flexibility upon lease end - at the end of the lease you can choose to lease another vehicle, trade it in, sell it, or just turn it in and walk away!
- Pre-determined depreciation - when you sign up on a lease you know exactly what the car is going to be worth. This value is called the Residual.
- Warranty coverage - you don’t have to worry about expensive major repairs, the vehicle is always under manufacturer warranty!
- Many businesses prefer leasing due to the tax advantages.
As always when making a big decision like a vehicle purchase it’s best to do research before doing anything. Gather all of the information about the vehicles you’re looking at, the dealership and service dept, and the salesman’s reviews of the one you want to work with. When you’re confident of your homework, talk to a professional.
