Thursday, August 20, 2015

The Difference Between Buying Versus Leasing Your Next Vehicle

The Difference Between Buying Versus Leasing Your Next Vehicle

WESTLAND, Mich. – We’ve filled you in on the difference between buying a new or used car, but do you know the difference between buying versus leasing your next vehicle? There are a number of factors to consider before making your decision, so let’s get on with it.

If you buy your next vehicle…

  • Get used to driving only that vehicle for a long period of time – let’s say 60 months. 60 months might not sound so bad – “It’s only 5 years,” you say – but don’t forget that also means you’ll pay the same rate for that one vehicle as it depreciates and loses value over time.

  • You can always sell it or trade it into a dealership. However, don’t expect to get back what you paid for. It’s common knowledge that vehicles tend to depreciate by $9,000 every five years.

  • You’ll either have to pay in full or finance it. Financing can get pricey, depending on your credit history, how much you put down on the vehicle, and whether or not the vehicle is new or used. A typical rate could be around 4.99%, which could be a little steep for some drivers.

  • Don’t forget it’s a finite machine and will wear after thousands of miles. You should expect to pay for regular maintenance along the way when you own a car – oil changes, tire replacements, and brake replacements to name a few – but don’t disregard the fact that by 30,000–50,000 miles your vehicle might need some major repairs or updates.

  • You can’t shirk the responsibilities attached with owning a vehicle. If you buy, you need to be willing to shoulder more of the burden of maintaining your vehicle, but that also means your vehicle belongs to you. Ownership can be freeing feeling.

If you lease your next vehicle…

  • You can get a new one in another two years. Sticking to a timeframe of 60 months, you could drive 2.5 vehicles in the same amount of time as buying one vehicle. Imagine always driving vehicles with the newest design, technology, and safety features.

  • You can still use a trade-in to put money towards your lease. There are also programs where you can roll your existing lease into a new one and possibly receive a discount or avoid fees for going over miles.

  • You’ll have to adhere to the mileage policy you agree to. The more miles you want to use in a year, the more you pay monthly. If you agree to a 12,000-mile allowance per year, you’re expected not to go over.

  • The dealership will cover most of your maintenance for the entire term, including free oil changes and other regular services. You also won’t have extra repair costs that lie under the vehicle’s warranty for the entire term. Now, isn’t that convenient?

  • You’re responsible for enjoying your vehicle and making sure it stays in good condition. The dealership takes care of the big stuff so you don’t have to, and you definitely won’t need to worry about your vehicle reaching a point where it could undergo some major repairs – You’ll have a new vehicle by then.

And the winner is…
It all depends on what you value in a vehicle and how much effort you want to put into caring for it. If you enjoy ownership and sense you might feel pressured under a lease, maybe you should consider buying your next vehicle. If owning a vehicle sounds like too much work and, frankly, you don’t want to drive an older car in a few years, consider leasing your next vehicle. Both options are great depending on who you are as a driver, but the important thing is you understand the difference between buying versus leasing your next vehicle before you make a decision.

If you want more information on the difference between buying and leasing your next vehicle, stop in at our Garden City area used car dealer where one of our knowledgeable associates would be happy to sit down and help you decide. Or, feel free to ask us a question at our Buying vs. Leasing page! If you're leaning more towards leasing, come to our Secrets of Leasing event to have all of your burning questions answered!

North Brothers Ford is located at 33300 Ford Rd Westland, MI 48185 and proudly serves as one of the premier dealerships in Metro Detroit, committed to exceptional customer service! Stop by, or give us a call at 888-806-7163, our knowledgeable and helpful sales team will be more than happy to assist you!

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