One of the most important decisions you’ll make when shopping for a new car in the Lewistown, State College, and Bellefonte area is how you want to purchase the vehicle. Today, you’re two options are leasing and buying.
Each option has a variety of pros and cons. In the article below, our team at The Lake Dealerships will explain the key differences between vehicle leasing and buying so you can decide what’s right for you.
Years ago, it was typically businesses that would lease vehicles from dealerships. Today, many drivers also opt for a leasing agreement for lower monthly payments.
A major benefit of leasing is that you can usually get a more expensive model at a more affordable monthly rate. Not only that, but monthly payments are typically lower for leased vehicles than when you decide to finance the vehicle. Still, leasing has its downsides as well. For example, leasing agreements feature mileage restrictions that you’ll have to follow. Going over the limit could result in a penalty.
However, once the leasing agreement is over, you can return the vehicle to the dealership quickly and easily.
The Pros and Cons of Purchasing a Car
If you want to have the vehicle for a long time, then buying is the way to go. When you finance a vehicle, you eventually own it and can use its value toward the purchase of your next car or truck. You can’t sell a leased vehicle.
However, a concern that some car-buyers have is that the vehicle’s value typically goes down over the time of ownership. And so, you won’t get as much as you paid for it when you go to sell. Buying a car also typically involves a larger down payment as well. Usually, your monthly payments are higher when financing a car since you’re paying for the entire price of the vehicle. For a lease, you’re only paying for the use of the vehicle over a period of time.
What Should You Choose?
Now that you’ve read this article, it should be easier for you to decide whether buying or leasing is the right choice. Most of the time, your budget will be the deciding factor. If you’re looking for a temporary ride with lower monthly payments, then consider leasing. If you want less restrictions and more equity, then buying might be the right choice.
Buying and Leasing at The Lake Dealerships
Deciding whether to buy or lease can be tough, but finding the right car at The Lake Dealerships isn’t. Not only do we have a large inventory of new and used models, but we also have an expert finance team ready to help you. Contact us today to learn more.