Buying a new vehicle is a big investment. Not only does it mean a chunk of money in monthly payments for a car loan, but it also means a big time commitment. You’ll own this vehicle for at least as long as you have a car loan, maybe even longer. Leasing can be an attractive alternative if you don’t want to have a long-term commitment to one vehicle. Consider the differences between buying and leasing to decide which is right for you.
When you buy a vehicle, you own it and can keep it as long as you want. You can sell it or trade it in on a new vehicle, lowering the amount you must pay for that model. You usually must have a down payment for a new vehicle, either in cash or with a trade-in. You’ll have to pay taxes and registration with other possible fees.
You’ll have a loan payment to make each month, which is usually higher than with a leased vehicle because you’re paying for the entire vehicle. The vehicle will depreciate over time, but the value belongs to you. You can drive it as much as you want with no restrictions on mileage or worry about wear and tear. You don’t need to return it until you want to sell it or trade it in for a different vehicle. You can also customize the vehicle however you want, adding accessories and modifications. While you have the freedom to do so, you may void your warranty if you make these changes while the vehicle is still under warranty.
When you lease a vehicle, you commit to a specific term, usually three years. You only pay for the value of the vehicle for those three years, which lowers your monthly payments compared to buying. You may still be required to have a down payment, which is usually referred to as a security deposit. You may pay other fees, including registration and taxes. You don’t own the vehicle, but you can use it until the end of the lease when you must decide whether you want to buy it or return it for another lease or purchase. If you end your lease early, you may need to pay early termination charges.
You’ll be given a number of miles that you’re allowed to drive annually though you can negotiate a higher limit. You’ll pay a charge for exceeding your mileage. You also pay for any damage that exceeds what is considered normal wear and tear. On the plus side, you can get a new vehicle every three years or whenever your lease ends, which allows you to enjoy the latest technology and innovations.
Neither leasing nor buying is the perfect solution for everyone. You must decide which is best for your lifestyle. The team at ALM Ford Marietta can answer your questions about leasing a vehicle and help you find a model that fits your needs. Visit us if you live around Sandy Springs, Smyrna, Athens, or elsewhere in Georgia.
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