To Buy or Not to Buy: Which Option is Right for You?
When it’s time for a new vehicle, you have options. So many options. There’s the fun part: type of vehicle, make, model, and color. And then there’s the financial planning part: Should you lease or buy?
If you ask friends and family, you’ll probably get mixed answers. This is because both options are good. The one you choose will depend on your preferences and personal situation.
Pros of Buying or Financing a Car
You’ll always get the best deal if you have the money to buy a car outright. Regardless of what you can negotiate with the dealer, you’ll avoid paying interest over a period of three to five years. This equates to massive savings. But not everyone can afford to spend thousands of dollars in one transaction. This is why financing is a great option. It allows you the ability to own your car after completing the monthly payments.
Here are some benefits of buying or financing your vehicle:
- Vehicle ownership – After you’ve completed your final payment, the car or truck is yours to keep. At this point, you can decide to keep or sell the asset.
- Avoid limitations – Even when you’re financing your vehicle, you don’t have to worry about how many miles you put on it. There are no limitations, so you can feel free to take a cross-country trip if you’d like.
- Add customizations – Since this is your vehicle, you can do with it what you’d like. Paint it, add aftermarket upgrades or leave it as is. The choice is completely yours.
Pros of leasing a car
If you’re the type of person who likes to have a brand-new car every few years, leasing is a great option. Although you may not have as much flexibility with mileage and design, you get to trade your car for a newer model whenever your term is up.
Here are some more benefits of leasing your vehicle:
- Lower monthly payments – Auto leases typically come with lower monthly payments than financing, so you may be able to save money or get a nicer vehicle.
- Keeps things fresh – You’ll eventually have to return or purchase your leased vehicle, so you’ll get into the habit of caring for your car and keeping it clean.
- Lease incentives – If you shop around, you may find an amazing deal on a leased vehicle. Examples of great lease incentives include no money down, low monthly payments, and a combination of the two.
If you’re still on the fence, talk to your local dealer about current financing and leasing options. He or she can help you determine which option is right for you at this point in your life.
This is a collaborative article.