Deciding between purchasing or leasing a car is usually a difficult choice to make.
On one hand, it may be intimidating to part with a large sum of money upfront if you choose to buy it off the lot. However, 100% financing is usually an option that helps lessen the financial burden. Additionally, you do end up owning the vehicle as soon as you drive it home.
On the other hand, you have the option to lease. This is when you pay a monthly expense based on your agreement with a lender. Once you’ve signed all the necessary documents, you get to drive the vehicle home, a vehicle that may have been too expensive for you to buy outright. But, you end up in a cycle of monthly payments just to keep the new car, and will not be the permanent owner.
The greatest advantage that you get when purchasing a car is that you actually own it from the day you bring it home. This means that, unless you go for an auto loan, you don’t have to worry about monthly payments and can choose to sell it at any time.
Even with an auto loan, when you’ve finished paying it off, you have complete equity in the vehicle. Although initial monthly payments may be higher than leasing, from a long-term financial perspective, buying is a smarter choice.
Buying a new car also means lower insurance premiums compared to when you lease. Additionally, a newly bought car means that you can rack up as much mileage as you want with no excess fees. You can even customize the car as you see fit.
Overall, buying a car usually ends up as a cheaper option than leasing.
Although the idea of leasing a car may sound appealing, it actually comes with numerous disadvantages compared to simply purchasing a vehicle.
As you can see, buying a new car is usually more advantageous than leasing a vehicle. The overall amount you spend when purchasing a new car often ends up significantly less compared to the total you hand over when leasing — keeping in mind the value of the car you get to keep when buying.
Buying offers more flexibility and is the smarter financial choice in the long run. Ready to get pre-approved, ditch those repair bills and enjoy the new to you car smell? And don’t forget, HopeSouth is here to get you into that new car.