Buy vs Lease
Deciding between buying and leasing is the starting point of shopping for a new car. Each options carries its own set of implications.
Buying
Most car shoppers choose to buy a new car by taking out a loan. This requires money down or a trade-in. You then make monthly payments until ultimately paying off the loan.
When compared to a lease, buying a car is more expensive up front as it usually requires a larger down payment and more costly monthly expenditures. However, after you pay off the loan, the car belongs to you for your purposes. There are no restrictions on how many miles you can drive, and you do not incur any charges for any excessive use of wear and tear on your vehicle.
Leasing
For buyers who enjoy driving a new car with the latest features, leasing is an excellent choice. When your lease contract is up — often after two or three years — you return the car and can start the process over again with a new model year.
Lease contracts enable you to drive the car for a specified amount of time, while you make monthly payments. Lease payments typically are lower than a loan payment. Because of this, many buyers are able to afford a nicer car with a lease than they could with a loan.
However, you do deal with a few downsides when leasing. Since you do not own the car, your miles driven must correspond to the amount agreed upon in the leasing contract. In addition, if the vehicles suffers any excessive damage under your care, the costs for the extra wear and tear falls on you to pay.
We are here to help your finance your next vehicle. If you have any questions about credit and getting pre-approved, visit Copeland Chevrolet in Brockton, Massachusetts.