Leasing vs. buying a car
Looking for a new ride may be easy but deciding whether to lease or buy is a difficult step. Buying may involve higher costs, but you own it in the end. A lease may have lower payments, but you continually have a car payment.
Which option is best for you?
Should I lease?
Leasing is much like renting a car, but instead of for a few days, you have the car for multiple years. For a lease, you’ll pay a deposit and a monthly payment for a specific term, financed through the dealership. When the term ends, you return the car and lease another vehicle.
Some benefits may include:
- Lower payments.
- Less money down.
- Manufacture warranty options.
Keep in mind when leasing there are mileage limitations, and at the end of your lease, you’ll have to return the vehicle in good condition or risk paying additional fees. You also don’t keep the car at the end of your lease. Unless you choose a lease buyout, you’ll never fully own the car.
Leasing is one way to have a vehicle without any long-term commitment or big down payment. However, if you continue to lease, it may become more expensive.
Should I buy?
Instead of leasing a car for a few years only to return it, buying means you fully own it once it’s paid off. When you buy a car, you may spend more. According to Kelley Blue Book, the average price for a new vehicle in December 2021 is more than $47,000. Other options include certified pre-owned and used cars.
Some benefits may include:
- No mileage limits.
- No wear-and-tear fees.
- Sell or trade in your vehicle (Make sure you pay off the remaining auto loan balance before choosing this option).
Your monthly payments may be higher than leasing if you’re looking to buy. You may need to make a down payment and pay off the remainder through an auto loan. Consider this: If you put more money down, you may have a lower monthly payment and term of repayment.
Once you buy the car, you’ll receive the title and it’s yours. You may choose to keep the car until you can’t drive it anymore. However, you are responsible for any long-term maintenance costs. When something breaks, you’ll need the money to repair it. Make sure to read the fine print on your warranty. It may only cover your car for a specified time frame.
Looking for an auto loan?
If you’re in the market for a new or used vehicle, or if you would like to refinance your current vehicle loan from another institution at a lower interest rate, Adirondack Bank offers a variety of terms at competitive interest rates. Contact your local branch for full details.
The information in this article was obtained from various sources not associated with Adirondack Bank. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. Adirondack Bank is not responsible for, and does not endorse or approve, either implicitly or explicitly, the information provided or the content of any third-party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. Adirondack Bank makes no guarantees of results from use of this information.
