Are you thinking about adding another car to your garage this summer? If so, you may be thinking about whether to buy or lease your vehicle. When making significant decisions such as this, the best course of action would be to create a cost-benefit analysis of both choices or even just a pro-con list to weigh all your options. You may still find that there are good points to both; for example, a lease has lower monthly payments than buying a car, but when you buy a car, you own an asset that goes into your net worth. There are several moving parts (pun intended!) to determine which option is right for you, and we hope the insights below will help you choose the best choice!
What Should You Know About Buying A Car?
- Before you buy or lease a car, you must decide which option is best for you. Buying a car is best for people who want to be in total control of their vehicle and payments. You wouldn’t have to stress about extra charges or staying within the mileage. While you would have to do more careful budgeting with buying your car, you will have control over the vehicle- something leasing would not be able to offer you.
- Buying a car with a loan is relatively straightforward: You borrow money from a bank, credit union, or any other lending institution and make monthly payments for x number of years until you pay off the loan and the car is yours.
- Each payment goes into the interest, so it is critical to pay your loan on time- the higher the interest is, the higher the payment!
- You can sell or trade in the vehicle once your auto loan is paid fully. You also don’t have to worry about mileage limits or charges for wear and tear once the car is officially in your name.
What Should You Know About Leasing A Car?
- When you lease a car, it is financed through the car dealership you bought your vehicle. You can drive this vehicle for a fixed period, usually three or four years, before returning it to your dealer without any scratches or dents. (or risk paying extra fees!)
- Leasing is the best option for anyone not looking for a hefty financial commitment upfront. The monthly cost may be more affordable than if you were buying it, and leasing may even allow you to drive a more expensive vehicle that you may not be able to afford if you were buying it. But be warned: if you are planning on taking long road trips in the future, you may want to consider allocating your finances for buying a car!
- When you lease a vehicle, the contract may include free oil changes and other maintenance.
- You also enjoy the latest safety features, and you won’t have to worry about your car’s trade-in value fluctuating when the economy goes through its ebbs and flows. If you are a business owner, you may also enjoy some tax advantages of leasing your car.
Decisions, decisions, we all make them! At Tow Pro, we are the towing and hauling experts. Our number one priority is customer service – that means anyone answering your questions is a bona fide staff member and NOT a robot. Just like that car you bought or leased, Tow Pro is fully insured and bonded. Our experienced operators are always ready with top-of-the-line equipment 24/7 since we know that emergencies don’t come planned. Contact us at (615) 256-TOWS (8697) and let us know how we can be of assistance!