Based on your financial situation, deciding whether to buy or lease your next car can be difficult. Whether you don't know the pros and cons of each or just aren't sure what the difference is, it's always best to know what will work for you. Here at P&W BMW, we can help you decide whether to buy or lease your next vehicle.
We all know what it means to buy a car - you buy the car outright and are the sole owner. Once the car is paid off, it's yours. Your insurance cost when you purchase a car rather than lease one are often lower. You'll never have to worry about mileage limits or spills and stains. You can sell it whenever you want and can throw on as many aftermarket parts as you wish to customize the car perfectly to your tastes. While these things maybe seem obvious, when you lease a car they are items you would normally have to worry about.
While it may seem like a no-brainer to just buy a car rather than lease one, there are a few downsides to buying. Purchasing a new car often requires a higher down payment and monthly payment than leasing does, and your investment, your new car, depreciates as soon as you drive it off the lot. All future repairs after any warranty expires are also your responsibility in the long run.
Leasing a car means you take out a contract and pay the difference between the car's price and what it will be worth at the end of the contract. Down payments are usually small, and occasionally not even required. Monthly payments are also less than if you buy the vehicle outright. A low credit rating also won't hinder you as much when you're looking to lease a new car rather than buy one, and leasing your car may actually enable you to help raise your rating as long as you are making all the payments on time.
On the other hand, leases usually have mileage limits and you'll pay a fee for every mile you go over. Insurance premiums are usually higher for auto leases compared to when you own the car. Your payments on the lease last as long as the lease does, so depending on the length of the lease and the price of the payment, you might be better off getting a new car to start with.
If you're still not sure if buying a new car or leasing one is the right path for you, stop by P&W BMW right here in Pittsburgh, PA and talk to our savvy finance staff. They can help you determine if buying or leasing fits best with your driving habits and finances. Fill out the form below, or call us at (877) 856-1113 to set up an appointment or just stop in. We look forward to seeing you!