As a car lover, you probably approach the process of buying a new vehicle with a great deal of thought and consideration. You know every little decision can have a significant impact on how much functionality and enjoyment you get out of the car over its lifetime. Even though selecting the features and options you want is important, there’s another type of choice that’s just as critical.
Deciding whether to buy or lease your new ride can have significant financial ramifications over the next few years. For example, under a lease, your monthly payments are typically lower because you’re only paying for the depreciation during the term. Buying, on the other hand, means your monthly payments will be higher because they represent a portion of the entire purchase price.
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Another example of the difference between the two payment structures is who will be responsible for repairs and maintenance. If you purchase your vehicle outright, you have to pay for any work done to it yourself if it’s not covered by a warranty.
However, these services may be covered under the terms of a lease, meaning you won’t have to pay for them. If you’re hoping to customize your new car, you should consider buying, because a lease won’t allow you to make any changes such as repainting or adding aftermarket accessories.
If you’re in the market for a new vehicle, you would do well to add “lease or buy?” to your checklist of questions to ask yourself. For more information to help you decide, take a look at the accompanying resource.
Infographic created by O’brien Toyota