Car Leasing Advantages and Disadvantages
Buying Advantages
Since you own the vehicle, you can trade it in or sell at any time and use the value towards your next vehicle. Buying is also ideal for commuters and frequent road-trippers that accumulate well over 15,000 miles annually. Car buying is the most cost effective in the long run since you are paying off the entire vehicle.
Buying Disadvantages
Unless you have excellent credit, you are going to have higher monthly payments. Even with great credit, you are still paying off the entire vehicle plus interest.
Cars only decrease in value. A new car loses up to 11% of its value just by driving it off the lot. A vehicle is only considered an asset to the bank if the current value is higher than the amount owned. Every year, that asset will decrease.
Owning can be expensive if you intend to keep your vehicle for more than a few years. The warranty coverage will expire, leaving the cost of upkeep completely up to you.
Leasing Advantages
One of the strongest assets of vehicle leasing is that you drive more car for less. You are able to consistently drive a new car, only paying for the depreciation, rather than the entire cost of the vehicle, therefore making your monthly payments lower than monthly loan payments.
Car leasers also prefer the lower down payment, and lower monthly payments. For qualifying leases, D&M’s EZ Lease waives the down payment as well as the first two monthly payments.
Another convenience of leasing is warranty coverage. Since you are only driving the vehicle for the first few years, it’s most likely covered by the manufacturer’s warranty the entire term. You also turn the vehicle in before maintenance becomes costly.
Leasing Disadvantages
Most car leases require you to stay under 12,000 – 15,000 miles per year. Going over your mileage can be expensive, depending on your lease. If you acquire more mileage, and want the flexibility to opt out of your lease without termination fees, check out our EZ Lease.
For most car lease companies, early termination fees can be outrageous, if termination is even an option.
Buy or Lease?
Both buying and leasing a car have its advantages. Your values and current situation are a large factor in determining which is best for you. Contact D&M Leasing for a free car lease quote, or check out our lease return inventory, if you think buying is a better option for you. Whichever you decide, D&M Auto Leasing is here for you.