Choosing whether to buy or lease your next vehicle can be complex. On one hand, car buyers pay a higher monthly cost but can own their car over the long term. On the other hand, people who lease cars can enjoy lower monthly payments and drive a car beyond their price range.
Factors like inventory shortages and production slowdowns have made the decision of whether to buy or lease your next vehicle more difficult than usual. However, with more people choosing to lease a car, there has been a steady increase in leases over the past few years.
However, with high car prices, deciding whether to buy or lease your next vehicle is tricky. Your friends at Piazza Subaru, your local Subaru dealership in Limerick, PA, are here to help you understand your options. So let’s begin with the differences between leasing and buying options for a vehicle.
Lease or Buy a Car: What’s the Difference?
Leasing a Vehicle
When you lease a vehicle, you make payments to drive it for a specific time. The average lease is 24 or 36 months, but getting a longer lease term is possible.
There are mileage restrictions and limits on modifications you can make to the vehicle. Once your lease ends, you can return the car to your dealer or purchase it at a predetermined price, as the lease contract defines.
Buying a Vehicle
When you buy a vehicle, you immediately take title to it. You take ownership of the car if you pay cash for it or after you finance a loan with interest rates and complete your repayments.
Once you become the owner, you maintain control over all aspects of the vehicle and can choose to keep or sell the car. In addition, knowing when to buy a car at the right time can allow you to enjoy special deals and test drive multiple vehicles.
Pros and Cons of Leasing a Vehicle
Regarding leasing or buying a vehicle, lease payments are generally lower than monthly payments for a new car. It depends on the sale price, length of the auto loan, and the yearly mileage limit, in addition to a few other factors. Let’s explore the pros and cons of leasing a car, starting with a few advantages.
Pros of Leasing a Vehicle
Pay lower monthly cost
Get a new car every few years
Enjoy worry-free maintenance
No resale worries
Cons of Leasing a Vehicle
Mileage restrictions and lack of control for modifications
Potential fees for excessive wear and tear
Pros and Cons of Buying a Vehicle
When you buy a vehicle, you can keep it for as long as you choose. However, you’ll usually make a higher down payment and monthly loan payments compared to leasing a car if you finance your purchase.
However, there are strategies for reducing these amounts, such as buying a less expensive new car or a used car. Furthermore, deciding when to buy a vehicle may allow you to browse the latest new models in stock.
Pros of Buying a Vehicle
No mileage restrictions or fees for wear and tear
Complete control over possible modifications
Potential to build equity
Possibility to improve your credit score with timely monthly payments
Cons of Buying a Vehicle
Potential for depreciation in the first several years
A high amount of driving costs for fuel, maintenance, and insurance
Lease or Buy a Car: The Bottom Line
The decision of when to buy a car or lease one depends on your lifestyle, financial situation, and driving needs. Car shopping can be challenging, but knowing what you want in a vehicle, including your financial budget, can help you decide whether to buy or lease your next vehicle.
Leasing a car is attractive if you want lower monthly payments, like getting a new model every few years, and don’t want specific responsibilities, like selling your car. In addition, leasing a vehicle may allow you to drive a luxury model that otherwise may be out of your price range.
Buying a vehicle allows you to own it outright when you pay cash or build equity when you pay it off with a loan. You’ll enjoy complete control over your expenses and the freedom to schedule service or repairs according to your needs. You can also drive it as much as you wish, make any modifications, and sell it on your terms.
Buy or Lease?: Visit Piazza Subaru for Help With Your Best Option!
Piazza Subaru knows that deciding to buy or lease your next vehicle can feel overwhelming. That’s why our expert team is here to help you determine the best option according to your budget, lifestyle, and other essential factors.
Stop into our dealership to learn more about our specials and financing options or if you want to test drive the new 2023 Subaru Crosstrek. The team of professionals at Piazza Subaru is here for all of your new and used vehicle needs and provides you with the best service and quality parts. Contact us today to learn whether buying or leasing your next vehicle is the right choice for you!
