If you are in the market for a new vehicle, you may be wondering if it's a good idea to buy or lease. Knowing the difference between these two options can help you better decide which one is the right choice for you.Â
The difference between Buying and Leasing a VehicleÂ
When you buy a vehicle, you may decide to pay the full cost of the vehicle outright or pay monthly payments until the vehicle is paid off. Either way, once the vehicle is paid off you will have complete ownership. Leasing a vehicle entails agreeing to pay and use a vehicle for a certain amount of time before turning it back in to the dealership.Â
Pros and Cons of Buying a VehicleÂ
The biggest pro of buying a vehicle is ownership. Once the vehicle is paid off it is yours completely and you can make modifications as you wish. If it becomes scratched or has minor damages to the interior, you don't have to worry about paying a penalty fee to the dealership.Â
On the flip side, a vehicle will depreciate with time, meaning that if you decide to sell it, you may not get back the money you originally spent. Also, over time as a vehicle ages, you may have to spend more on maintenance and repairs.Â
Pros and Cons of Leasing a VehicleÂ
On average, leasing a vehicle may be a bit cheaper as it's associated with lower monthly payments. This is due to paying for the term to use the vehicle vs the whole cost of the car. Another pro of leasing is warranty coverage. Leased vehicles are usually covered under the manufacturers warranty during the lease term.Â
In terms of cons, lease vehicles may have mileage restrictions limiting the number of miles you can drive without adding on extra fees. Another con is not having ownership of the vehicle. This means not being able to trade or sell the vehicle in the future.Â
Buy or Lease Your Next Vehicle in Portage, MIÂ
Whether you decide to buy or lease your next vehicle, our dealership can connect you with a vehicle and plan best matched to your needs. Contact our team to learn more and to schedule a test drive today!Â
