Toyota Near Stallings Looks at Leasing vs Buying a Car

May 11, 2015

When it’s time to get a new car, you have two options: Buy or lease. Which one is right for you? Toyota near Stallings knows that this can be a difficult decision to make. You have probably heard that there are pros and cons to each – and like with everything, that is true. For that reason, they want to discuss these pros and cons so that you can make the best decision for your needs. So, without further ado, here’s a look at each option.

Buying

When you purchase a car, you have to decide how you are going to pay for it, and if you’re like most car buyers, you’ll need to finance it. The most common way to finance a new car is by taking out a loan. What’s the advantage of taking out a loan to finance a car? Well, you get to keep it as long as possible and once the loan is paid off, you own it outright and have no more payments. Another advantage of buying is that you don’t have to worry about how many miles you drive. However, there are some disadvantages to buying a car. For example, if you want to sell the car, there’s no telling what the resell value will be. Also, you may need to have a sizeable down payment when purchasing a car. Typically, a dealership will want 10% down, which means $3,000 on a $30,000 car. It may be difficult to come up with that sum of cash.

Leasing

Leasing is essentially another form of financing a car. The benefit of this is that you may be able to spend less money and get more car, and that’s because a loan is based on the full price of the car and a lease is based on a percentage of the vehicle’s price. Another benefit is that you will have the ability to get a new car more often. Leases last for a set period of time; 3 years, 4 years, etc. So, once the period of time is up, you will be able to get a new car. However, on the downside, you always have a payment and you could actually end up spending more money overtime.