Have you had your eye on a new car? Maybe you’re considering sizing up to a roomy crossover or SUV. Either way, one of the biggest decisions you’ll face is whether to buy or lease your next vehicle. Each option has its list of pros and cons; when you purchase, you own the vehicle, but you have a higher monthly payment. Leasing gives you a lower payment, but those payments will never be put toward ownership. There’s a lot to think about, and being informed of all your options can help you make the best financial decision for your next new vehicle.
Purchasing Your Vehicle
In most cases, buying a car involves a loan. You’ll need to apply for financing, which can be done directly at our dealership for the most convenience. Buying a vehicle also requires a down payment, so depending on what you’re looking for, you’ll need enough cash in hand to make the purchase. There’s also taxes and fees to consider. Trading in your vehicle can help with the down payment costs, which will in turn lower your monthly payment. The good thing about buying is that the vehicle is yours to use as you please; modify to your heart’s content, drive as much as you want, and in the end, you’ll have an asset in your name. However, it’s important to consider the length of the loan and keep up with paying each month before the car is all yours.
Leasing Your Vehicle
With a lease, you are essentially making a payment each month to borrow the vehicle from the dealership. That price is lower because it’s never applied to the principal. Instead, that cost is associated with the car’s depreciation as you use it. Leasing means you can drive the newest cars with all the latest in tech and safety, giving you access to a vehicle that might not otherwise fit in your budget. Of course, there are downsides. The biggest one is that the car will never be yours, so those payments are only going towards the ability to use it. Additionally, there are often restrictions on mileage and modifications since the vehicle will eventually go back to the dealership. You’re also required to maintain the vehicle and keep it in good working condition, and many repairs like tire replacement are still up to you.
Lease or Buy at Hayward Mitsubishi
Do you want to know more about our financing or leasing options? Contact us today at Hayward Mitsubishi! We can go over your choices and help you make the right choice.