Like any other important life decisions, getting a new car can be both intimidating and thrilling. But if you back your decision with facts and experiential knowledge, you’ll never have to worry about making the wrong choice.
Indulge in excitement and enjoy the process, you are getting a new car after all! To guide you whether it’s better to buy or lease a new car, here are a few takeaways from a trusted Covington Subaru dealership.
What do I get with a new car?
One great thing about having a new car is having the freedom to customize it as well, from its façade down to its machine parts. There’s no limit as to where you can take it, since it’s ultimately your property. Plus, you can go on using it for as long as you want, even after paying off its loan.
Once your car has completed its purpose, you may exchange it for another car that will meet your current demands, or sell it to someone willing to pay for its cash value. Keep in mind, though, that its value gradually depreciates in a year. Yet, in the long run, say about eight (8) years, owning a car is more economical compared to leasing.
However, when purchasing a vehicle, you’ll have to prepare to make a higher down payment. Similarly, if you apply for financing, the monthly dues are relatively more expensive compared with monthly leasing fees. On top of that, you’ll have to shoulder additional costs to get an extended warranty for your new car. Still, a couple of great car dealerships out there are willing to help you out through value-added services like free car maintenance.
Why should I consider leasing?
With leasing, you’ll get less upfront money, lower monthly payments and no security deposit. Cars for lease are also insured and under warranty all the time. Lastly, you get to change your car every 2 or 3 years – you might end up driving home the best car model with the latest technology and safety features!
On the other hand, you should not opt to lease a car if you travel a lot. This might lead to breach of annual allowed mileage per lease agreement, which is within 10,000 to 15,000 range. You’ll also want to avoid prematurely terminating a lease contract, or face additional fees and fines. If you’ve added modifications to any of the car parts, you must return it to its original state upon turning in. The normal wear and tear warranty is limited, and any external damage caused will have to be paid at the end of the lease. Also, while lease contracts ask for lower monthly fees, mind that you need to secure a good credit record.
Do I buy or lease a new car?
To determine the best choice between the two, you must ask yourself these questions: How long will you be able to sustain paying for car monthly dues and maintenance fees? What car functionalities are essential and negotiable for your needs? And, is this car your dream car that you want to treasure long term or a car you need for a specific purpose and willing to replace after a period of consumption?
It all boils down to your intentions and resources. But remember to prioritize your financial capability before you dwell on other personal preferences.
If you want to know more about buying or leasing a car, check out Baldwin Subaru, a Subaru dealership in Covington for more helpful tips!
