Are you in the market for a new vehicle? We know finding the right vehicle isn’t always the easiest task, I mean there are a lot of different brands, models, prices, etc. One of the hardest decisions you’ll have to make is whether you want to lease or buy. For some people, this is a no-brainer, but for new car drivers or people unsure of the difference, it might be a harder decision. in this week’s blog we are helping you make that decision by breaking down the two options and helping you make an informed decision!

Deciding between the two options is more about a lifestyle choice. You will have to think about how often you drive, how far you drive, how much you are willing to pay and other things alike. Your lifestyle plays a big role in whether you choose to lease or buy.

Financing will also play a role in your choice. It is important to have an idea of what you are willing to put down as a down payment if any at all. Also, think about what you are comfortable spending on a car payment each month – this will help you decide whether to buy or lease.

Pros to leasing:

• Lower monthly payments and little to no down payment.
• You can easily transition to a new vehicle every three years.
• Trade-in hassles are a thing of the past when you lease.
• Your repairs costs can be cheaper due to the vehicle’s factory warranty
• You can drive a nicer, newer car for less money.

Cons to Leasing:

• You have limited mileage during your lease.
• You could face wear-and-tear charges, this is can have a hefty price tag at the end of your lease
• The dealer has true ownership over the vehicle – but you do have the option to buy.
• Lease contracts can sometimes be confusing and include unfamiliar terminology.
• It will cost you a pretty penny in order to terminate your lease early.

Pros to Buying:

• You will save money long term if you choose to buy.
• You’ll have the option to trade-in on the next vehicle you plan to purchase.
• No mileage restrictions – you can go wherever you please.
• You can modify your vehicle however you like.
• Flexibility towards selling your car.

Cons to Buying:

• Hefty down payments to avoid a higher monthly payment – or if you are upside down in a loan.
• Your money can get tied up in your vehicle, which depreciates in value.
• Expired warranties = your wallet suffering from repair costs.
• You may have a difficult time trading or selling your vehicle.