Buying a new car can be a straightforward and self explanatory process. You acquire a loan from a bank or source that offers auto loans, you then make monthly payments until the loan is paid off plus additional fees and bank charges. The more payments you make the closer you get to owning the vehicle. Once all your payments are made, then that vehicle is officially yours and you can do with it as you please. Some keep it or some hand it down to their children or loved ones. You are also able to do any sort of modification to the vehicle such as a new paint job or new engine. But keep in mind that these modification may lower the resale or trade value later down the road if you decide not to keep it..
If you decide to purchase a vehicle, your payments are typically higher than if you were to lease it. But in the end you would own that vehicle. At a glance leasing can be the more attractive deal because of the low monthly payments, low APR and a reasonable payment due at signing. But keep in mind there are penalties involved with leasing if you don’t follow the rules. Dealerships usually have these rules set to keep the leased vehicle in the best condition possible since you do not officially own it. For example there is usually a 12k to 15k mile limit per year you can put on the vehicle before being fined somewhere between 15 to 20 cents per extra mile.
These are some of the other great advantages to leasing a vehicle instead of buying:
- There is little to no down payment required
- You can drive a newer model vehicle with all the bells and whistle in which may have been out of your budget before.
- Your vehicle is fairly new so it's still covered under the manufactures warranty.
- You have the option to finish buying the vehicle once your lease is up.
As great as these options sound, there are a few disadvantages.
- You are not allowed to modify or custom your vehicle in any way, shape or form.
- If you decide to get out the lease, you will likely get stuck with thousands of dollars worth of early termination fees and penalties all due at once. Which usually equals to just about the amount you would have payed over the term of your lease.
- You must keep your vehicle in tip top shape or run the risk of being charged wear and tear fees.
It is very important to keep these pros and cons in mind when making your decision. If you like the convenience of a low monthly payments and the ability to drive a new vehicle every few years then leasing would be perfect for you. If you're not fond of the idea of not truly owning the vehicle you're paying for, then financing would be the way to go.
No matter what you decide to do, you can save by choosing a vehicle that holds its value overtime, offers great fuel efficiency, and has top scores in Consumer report ratings. Our sales people here at Stokes Honda Cars of Beaufort are more than willing to go over all your car buying choices and options. We understand that there are various trims and features available and we listen to your needs to help you find the best vehicle possible.
