When the time comes to get a new car, you have one big decision to make. Do you want to buy your new car and finance it through a loan or take out a lease? We’ll look at some of the pros and cons of each decision to help you decide which works better for your lifestyle.
When most people buy a new car, they will take out a loan to pay for it. If you go down this route, you will make monthly payments until the loan is paid off. Typically, financing a car requires a larger down payment and higher monthly payments than a lease. You also have to pay for any maintenance costs once your warranty expires.
However, on the upside, you can feel pride in knowing that once the loan is paid off, the car belongs to your outright. You also have the freedom to do whatever you want with it and drive as much as you’d like.
For people who love driving the newest cars, leasing is a great way to do this. Lease contracts typically last for about 3 years. When the contract is up, you simply bring the car back and you can start the process again with another brand new car.
Monthly lease payments tend to be lower than loan payments, which means many drivers can afford a nicer car with a lease than they could through a loan.
With the lease, however, there are restrictions on how much you can drive. If you go over that preset mileage, you have to pay per mile you went over. You also have to pay for any excessive wear-and-tear on the car.
As you can see, there are numerous benefits to each option. If you need help deciding which choice works better for you, Bakersfield Mitsubishi is here to help.