When it comes to procuring a vehicle, consumers typically have two major options available to them: they can choose to lease a new car, or they can purchase one to own.
“Both have their fair share of advantages and potential disadvantages depending on the person,” said Moss Bros. Auto Group. “Everybody’s situation is different. Only by considering what you need and how you plan to use the vehicle in question will you be able to make the decision that is right for you.”
Buying a new car involves borrowing money from a bank, a credit union, or a similar type of lender. You then make monthly payments for a pre-determined number of years, at which point you own the car outright. Leasing, on the other hand, means that you’re essentially paying for the right to drive a car for a specific number of miles and months. Determining which is best will require you to keep a few key things in mind.
Leasing a Used Car vs. Buying: Breaking Things Down
Should you decide to lease a new car, one of the most important things to do is to look carefully at the loan terms as they have been outlined.
As stated, leasing means that you get a car for a certain number of miles and months. Usually, that period of time is roughly 36 months – although some dealerships may offer more or less time depending on the situation.
The same is true of the amount of miles the lease dictates. Usually, this is approximately 10,000 miles – although it is not uncommon to find leases that specify 12,000 or even 15,000 miles. The critical thing to keep in mind is that every mile you go over the stated terms will only add to your final bill.
So if you’re planning on leasing a car that you know you’re going to drive for longer than the pre-determined miles, this isn’t necessarily the way to go. Yes, you’re probably going to get a higher end vehicle for a lower monthly payment – but if you completely disregard the lease terms, you’ll only end up eating into a fair amount of that which you assumed you would be saving.
Along the same lines, another one of the most important things to consider when leasing a new car versus buying one to own has to do with wear and tear. Yes, maintenance is a fact of life when it comes to operating a vehicle. But depending on the lease conditions, you could be on the hook for any significant dents, scratches to the paint, damage to the interior, and other issues that occur from the moment you drive off the lot.
36 months is a long time and a significant amount can happen. If you are confident in your ability to keep the vehicle looking and functioning well, this shouldn’t be much of an issue. But if this isn’t a possibility for whatever reason, a lease may not be as attractive as you’d initially thought.
That’s not to say that leasing isn’t a good idea for many people, because it is. In addition to the fact that a leased car comes with fewer hassles than one that you purchase to own, with far fewer unexpected expenses, you also get to convert it into a brand-new car every two or three years. This is not dissimilar to the way that people who frequently upgrade their phones choose to get on something like the iPhone Upgrade Plan, which allows them to make monthly payments and turn their phone in for the latest and greatest model after a year.
The major upside to owning a new vehicle is exactly that – you own it. Once that final payment is made, nobody can take it away from you. You can keep driving it indefinitely without a payment, or you can choose to sell it and put that money towards a new car. That’s the type of freedom that you don’t get from a leased vehicle, and it’s a major factor that a lot of people put a significant premium on.
About Moss Bros. Auto Group
Moss Bros. Auto Group is the parent company for a plethora of different local dealerships, all proudly serving clients in Southern California and the surrounding areas. Since its inception, the company has made it a priority to offer quality customer service throughout its operations. It always goes above and beyond to help its customers find the right vehicle for their needs. Moss Bros. Auto Group specializes in the sale of both new and used vehicles of all shapes and sizes – from cars to trucks to SUVs, vans, wagons, and everything in between. They also offer unbeatable auto repair and maintenance services at all locations.