Lease vs. Purchasing – How to Tell Which is Best for you?
Car is a basic necessity for your everyday activities thus, buying one is a no-brainer. However, there is an important consideration for you, which is lease vs. purchasing – how to tell which is best for you. If you are not quite sure about the best answer, make sure that you weigh your options first. There are some vital points you need to consider before making that all-important decision.
Lease vs. Purchasing – How to Tell Which is Best for you
Shopping for a new car is inevitable and reasonable especially if your current one is already showing some wear and tear. For safety reasons, you need to get a new car as soon as possible. Some would want to switch to a better vehicle with much better gas mileage. Leasing or buying a car are your two options but which one is the best move for you?
Do your research to find the answer to the question, lease vs. purchasing – how to tell which is best for you? Here are some important things to carefully consider for a decision that makes financial sense:
Three Big Factors in Leasing or Buying a Car
At a glance, both leasing or buying a car have their own potentials benefits and pitfalls. However, there are three influential factors that you must see and look into first before that. These factors can guide you into narrowing down the best solution for your car investment.
- Monthly Costs
Under your monthly costs, you need to consider your monthly payments and car insurance. These are two essential elements in financing your car whether you choose to lease or buy it. So, which one is better in terms of your monthly costs?
With monthly payments, the best option is to give you the lowest payment dues, which means leasing has the upper hand. Monthly lease payments usually have lower rates compared to auto loan payments. Car insurance should be comprehensive with collision coverage. Regardless of your option, it is best to compare quotes first before you decide on an insurance plan.
- Overall Costs
How do you make the best decision on lease vs. purchasing – how to tell which is best for you? Check your overall costs and see which could give you better financing options. You need to consider your down payment, repairs, depreciation, and leasing fees.
Leasing a car may have a lower down payment but buying one leads to eventual ownership. A lease typically covers a warranty for repairs while buying a car requires you to allot a budget for regular upkeep and maintenance.
One of the deal-breakers, whether to lease or buy a car, is the flexibility of your option. Some drivers would not want to be locked in just one specific car for a long time. Nevertheless, buying a car gives you the option to sell your vehicle too in case you want to upgrade or switch.
Lease vs. purchasing – how to tell which is best for you? There are numerous things to consider before you can come up with the right solution. Let us help you with your next car investment. Call North Edmonton KIA today!