Buy vs. Lease in North Canton, Ohio
Choosing a new car is a big decision. However, sometimes an even bigger decision is choosing how you want to pay for the car. The majority of new car buyers opt for a car loan. However, leasing is also popular. We’ll compare the two options to help you decide which is the best choice for you.
One of the biggest benefits to leasing is the low monthly payments. In fact, leasing a car will almost always give you lower monthly payments than if you were to take out a loan on the same car. Because of this, if you choose to lease a car, you should be able to afford a nicer car than you could with a loan. This could mean more technology and more safety.
Another lease benefit is that lease contracts usually last as long as or shorter than a new car warranty. This means lessees shouldn’t have to worry about maintenance costs.
However, there are a few drawbacks to leasing. One of the biggest is the fact that lease contracts come with mileage restrictions. If you exceed the allotted mileage, you have to pay per mile that you go over.
When you choose to finance a car, once you have paid off the loan, you will own the car outright—this is by far the biggest benefit of buying. This also means you gain equity in the car and if you choose to sell it or trade it in down the road, that money will go back to you. Buying also means you can make any modifications you want to the car and you can drive as much as you want.
However, with buying, there are a few downsides, as well. Financing a new car usually means you will need a fairly large down payment and will have to make more expensive monthly payments, when compared to leasing.