Buy vs Lease
Fred Beans Toyota of Flemington Discusses the Advantages of Buying and Leasing
For most Flemington, NJ car shoppers, finding their perfect new car is the easy part; the difficulty comes when it comes time to determine how they plan to finance the said vehicle. For most, it’s largely a matter of deciding whether to lease or to take out an auto loan is the ideal choice. Our Fred Beans Toyota of Flemington finance gurus can be of assistance when you come to visit our store, but for now, take a look at the information we have compiled below to see which financing route might be in your best interest.
Signs You’re the Ideal Candidate for a Car Lease:
With automotive advancements being made seemingly at the speed of light, the option to lease your next new car may seem to be the more appealing, financially savvy decision. You may be right, but whether or not leasing your next car is advantageous will depend largely upon your preferences and priorities, your driving habits, and your financial standing. Leasing might be in your best interest if…
- You’re looking to keep your monthly payments low. Generally, you can lease a car for less than you would be required to pay each month if you were to take out a loan; in a similar vein, you can get “more car”–a higher trim level or a more luxurious model–for the same or similar monthly payment as if you were looking to purchase a vehicle.
- You enjoy having the latest and greatest and/or you like driving a new car more often. If you’re the type of driver who enjoys driving a newer model more of the time, or you get bored easily and like to mix it up, opting for a lease will probably prove the advantageous choice. You likely won’t have the same degree of flexibility to trade in and buy new cars as regularly as you would if you simply signed up for a lease instead.
Think Taking out a Loan is Your Best Bet? Find Out if You’re Right:
For all of the indisputable benefits of leasing a car, the traditional car-buying route continues to be the best bet for a large portion of the population. You should probably take out a car loan if…
- You tend to drive a lot. Most lease agreements have a clause that specifies how many miles you are allowed to put on the car; go over this allotment, and you will be required to pay excess mileage charges when you go to return the lease. Naturally, if you’re the owner of the car (or, making payments on it until you will be the owner) there is no limit to how much driving you can do.
- You want to have something to show for your payments. Unlike leasing, when you’re paying off an auto loan, once you’ve paid in full the car is yours to do with it what you will. If you choose to lease, when the lease contract is up you have to return the car to the dealership or pay off its residual value if you decide you want to buy it from the dealer.