If you’re in the market for a new car, you might be overwhelmed by car financing information. While some people recommend buying your new vehicle, others swear by the flexibility of leasing. So, when does it make sense to lease over buying? Let’s go through the basics, so you can make the best decision for your needs.
Leasing vs. Buying
First, what are the main differences between leasing vs. buying? Buying a vehicle is a long-term solution. Generally, you’ll need to spend a little more on your down payment and monthly fees. But after years of paying off your loan, the car is yours to own. Leasing a vehicle is a short-term option. Typically, your contract will last two or three years – which means your car is often under warranty the whole time. At the end of your contract, simply turn the car into the dealership. This low-stress solution is a great option if you need a vehicle for a shorter period of time.
If you feel like a car loan is too big of a commitment for your needs, you might be a good candidate for a car lease. See if any of these scenarios sound familiar:
- Short-Term Stay: Moving somewhere for college or a short-term work stay? Leasing a vehicle might be an easier option than dealing with the resale issues of traditional car financing.
- Luxury Shopping: Want to experience luxury without breaking the bank? Check out the promotions on a luxury car lease. You’ll typically save quite a bit, especially with a trade-in.
- Work Vehicles: Need a car for your business? A leased vehicle is much easier to work into your expenses from an accounting perspective.
- Upgrade Potential: Get bored with cars easily? You can turn in your leased vehicle after a few years and explore the latest models with the latest technology.
Find Your New Car Today
Ready to find your next vehicle? Contact us at Bowman Chevy in Clarkston, near Waterford and Detroit, and we’ll help you find just the right model for your budget and lifestyle. We can help you take a test drive, set up financing, and even learn what to do after buying a car. Stop by the dealership today!