You’ve looked at a dozen or more cars and you have finally found the one. It fits all your lifestyle needs and it is in your budget. Now, it is time to decide how you will pay for it. Most people finance their cars but wondering if leasing might be right for you? Both methods of payment have their pros and cons, of course. Think about how long you want to own the car, how old it is, and how much cash you have available. Drive Now can get you and your new car on the road and help you decide which method of payment will work best for you.
The Pros and Cons of Leasing a Car
If you are someone who likes getting a new car every few years, leasing might be the right option for you. Like renting an apartment, when you lease your car, you make monthly payments that give you rights to drive the car. One of the benefits of leasing a car is that you might be able to drive off the lot without having to make a down payment either. The car is also under warranty, so luckily, mechanical problems will be covered. Another benefit to leasing a car over financing is that the monthly payments are typically cheaper and can possibly be deducted from your taxes if you use your car for business most of the time (check with your accountant for more details).
The cons of leasing a car over buying are that once you return it, you essentially have not built up any equity and have to start all over again. Often times the lease payments are set at a higher value than what the car is actually worth on the market, so be cautious of those situations by doing your research. You may also be required to carry more than basic car insurance in case of an accident, which can also be more expensive. Your lease agreement will usually allow for basic wear and tear on the car, but if there are any scrapes or excessive wear, you will have to pay for those repairs out of your own pocket.
Many leases also restrict the annual mileage allotment on a leased vehicle to a range of 10,000 to 15,000 miles a year, so be sure to take note of your driving habits before committing to a lease agreement, or you will have to face penalty fines. Again, since this a lease and not a purchase, you are restricted to add any vehicle modifications, like new wheels or an elaborate stereo system. Take all these things into consideration before deciding if leasing is a good option for you.
Financing to Own Your Car
The most common way to purchase a car is through financing or making monthly payments until the car is paid off. Financing can be convenient, financially because technically you are using someone else’s money to pay for your car. This allows a bit of leverage in your daily or monthly finances.
The availability of loans depend on your credit rating but do not let that discourage you if your credit history isn’t perfect. Car dealerships, like Drive Now, also have bad credit loans so you can still get a loan that’s right for you. If you are looking to buy a new car, but have not paid off the old one, talk to your lenders to see what may be feasible. A car is technically not yours until you are done making payments.
Unlike lease agreements, where most of the time you make no down payment, financing deals often require a down payment–somewhere between 10% to 15%. Financing typically takes more per month out of your budget than leasing does, but you get to own your car at the end of making payments, as well as build equity. Because any car purchase is a big investment, take the time to shop around for that perfect car with the right terms for you. If you are looking for the best buy here pay here Mesa, AZ dealer or in the greater area, call us at 602-345-8001 today!