Buying or Leasing a Car: Pros and Cons

When people first begin shopping for a new car, the most important thing on their mind is likely what type of car they’re going to get. Electric or gas-powered? New or used? This year or last year’s model? However, there’s something that should be on your mind the moment that you decide you need a new car: whether you want to lease or buy. That can be a significant decision, so you must have all the information you need to decide between one or the other.

Let’s look at the advantages and disadvantages of leasing and buying a car to help you figure out which option will be the best fit for your needs.

What Does It Mean to Lease a Car?

Image via Unsplash by why kei | CC by 2.0

Most people know what happens when they buy a new or used car. However, leasing may be a new concept to many people, which is why you need to understand how leasing will impact you. To put this in simple terms, leasing a car means renting out that vehicle for a specific period and paying an amount of money based on the agreement you reach with a dealership. Rather than outright buying a car, you drive it around until your lease ends.

What Are the Pros of Leasing a Car?

Leasing a car can be beneficial for a few reasons. Some of the main reasons why you might choose to lease a car instead of buying one include the following:

• A lease allows you to tap into lower monthly payments than you might pay if you were to purchase a car of your own.
• You can receive better warranty protection throughout the life of your lease.
• You can drive your car when it is performing at its peak and experience fewer issues along the way.
• There are often desirable terms in the lease agreement, including things like complimentary maintenance or reduced service prices.
• You can drive a new car with all the latest features that you might not otherwise be able to afford if you were to finance.
• You will not have to worry about fixing up your car regularly with the intent to sell it or trade it in once you need to get a new car.

In short, leasing can be a great way to get a new car every two to three years without worrying about purchasing it or dealing with the depreciating value or damage experienced throughout its lifetime.

What Are the Cons of Leasing a Car?

Of course, leasing doesn’t only have upsides. Some of the disadvantages of leasing include the following:

• Leases have specific terms, such as a strict mileage limit. Those terms can end up costing you more money throughout the life of your lease.
• You will pay more money over time than you would if you were to buy a car. If you’re regularly leasing, you may be paying lower monthly payments. However, those installments add up considerably during the lifetime of your lease and over the lifetimes of other leases you take on.
• You need to have a stable income and meet more financial criteria than if you purchased your car.
• You might end up paying extra fees throughout the lifetime of your lease and when you turn it in. Also, you might have to pay for things like tires, and you can’t customize your car.

Leasing is often the best choice if you don’t want to worry about all the disadvantages of owning your car. However, it’s important to remember the cons above if you’re thinking about leasing. Weigh your options to figure out what’s best for you currently.

What Are the Pros of Buying a Car?

Owning a car, much like owning a house, is something that many will work to achieve. Of course, a car is much more affordable, which is why you have more control over choosing between leasing and buying your vehicle. If you prefer to buy, you benefit from advantages like:

• Full ownership of your vehicle by the time you finish paying your auto loan.
• The ability to customize your vehicle as you see fit. There are no restrictions on what you can do to your car. However, you should note that some customizations may impact your car insurance rates.
• The fact that you can sell your car at any point in time. You also have that asset in your ownership to trade in for a new vehicle so that you can get a generous discount.

Additionally, you will not have to deal with mileage terms or other conditions that come with leases and increase the amount you’re paying for your vehicle.

What Are the Cons of Buying a Car?

Ownership may seem like the common-sense choice for those looking for a new car. However, car ownership does come with a few disadvantages that some may not see when they begin car-shopping. These include the following:

• You will make higher monthly payments over time.
• Your new car will have immediate depreciation after you’ve driven it off the lot, as well as continued vehicle depreciation over time.
• There will be unpredictable resale values, and they can impact how much you can get when you need to sell your car or trade it in.
• Regular maintenance and repair expenses will cost you more when your warranty expires.
• You will need to make a down payment when you purchase your car to bring your interest rates down, and this is something that you don’t have to deal with when you decide to lease a vehicle.

Given this information, who might prefer to purchase their car instead? If you want something that you’ll physically own after you’ve finished paying it off and you only want to pay a set amount during the time you’re driving your vehicle, buying is likely a better option for you.

Will You Lease or Buy Your Next Car at Spokane Hyundai?

Whichever option speaks to you above, Spokane Hyundai of Spokane Valley, Washington, is here to make it a reality. Our family-owned dealership helps prospective leaders and buyers find the best new Hyundai model or used car for their needs. Shop online to see what we have in our new car inventory, or contact us if you have any questions about the leasing or car-buying process.