There could be many reasons you’d like to switch to another car. Maybe your current ride has a lot of wear and tear, maybe you’re looking to buy a car with better gas mileage than your current one or maybe you just want to switch to a better looking vehicle for professional purposes. Whatever it is, if you’re looking to purchase a new vehicle but are having a hard time deciding whether you should lease or buy a new car, then you’ve come to the right place.
In our opinion, if you’re looking for the most cost-effective option over the long term, buying a used car and keeping it for a few years after you’ve paid it off, is usually the better choice. If you’d like your ride to be up-to-date with the latest technology and safety features, then leasing might give you the freedom to make periodic upgrades without going out of your budget. But the truth is that there isn’t simply one correct answer to this dilemma. Identifying key factors like cost and your personal preference can help make the decision easier for you.
You can also head on over to any of the Car Factory Miami or Hollywood outlets and discuss your preferences and options with our certified experts. Meanwhile, here are a few important factors to consider before making a decision.
- Monthly payments Even though your monthly payments while leasing won’t end in ownership of the vehicle, at least it might help you balance your budget. On the contrary, buying a new car means knowing your monthly payments will eventually stop when you pay off the car loan.
- Car Insurance Springing for gap insurance could be a good idea too as it helps minimize car theft or accident loss by covering the difference between what you owe and what your car is worth. But you must make it a point to ask if this insurance is already included in the lease agreement at no additional cost.
- Down Payment
A person with low credit score who wants to finance a more expensive vehicle would likely have to come up with a larger down payment. A used car might be the key to a more budget-friendly down payment, especially if your credit scores are lower. Leasing on the other hand can be quite cost-effective but then keep in mind that you’re potentially putting down-payment money toward something you won’t own in the end.
Cars are typically leased for 3 years, so it will most likely be under warranty for the duration of your lease. But you still might have to pay for the maintenance and repairs for when you return the car. If you decide to buy a car instead, you’ll want to budget for regular maintenance and upkeep and the cash that previously went to your monthly payment can be set aside to cover maintenance costs.
- Depreciation and leasing fees
As a car owner, the more miles you drive, the faster your vehicle depreciates. Auto leases usually come with mileage limits and going over that number could mean being penalized for it.
Leasing a car means that you may have to pay a couple of leasing fees in the forms of an acquisition fee, a security deposit, an early termination fee or a disposition fee.
Depending on your costs and needs, you’ll be better able to decide which option suits you best. You can book your appointment for a consultation at the Car Factory Dealership by calling (786) 406-6234 or by visiting CarFactory.com.