BUY VS LEASE
After finding that perfect vehicle with all the features you want, you’ll need to decide whether you want to buy or lease it. Both have their benefits, but to help determine which path is right for you, you’ll need to learn more about these options.
To do that, our team at Ira Lexus of Danvers created this buy vs. lease guide for drivers in the North Andover, Peabody, and Danvers areas. We’ll go over what exactly buying and leasing are, and how they differ. And if you have any questions while reading, don’t hesitate to CONTACT US.
BUYING OFFERS MORE FREEDOM
If you’re the type of person who likes keeping a vehicle for a long time, you may want to consider buying it. This way, you can drive it wherever you want, as there are no mileage restrictions. You can also customize it however you want, such as:
• Giving it a whole new paint job, like going from white to blue.
• Adding in a new stereo system to hear your music in concert-like quality.
• Changing the size or finish of wheels, like going from 15-inch gloss black painted steel to 17-inch machined gunmetal.
Before you make all those changes, you’ll need to pay for the vehicle, which is often done by taking out a car loan. When you’re taking out a loan, you can first put money toward a down payment. This will ultimately help lower the monthly costs.
The more you put down right away, the less you’ll need to pay each month.
However, since you’re paying off the entire purchase of the car, along with interest and other fees, loan payments are generally more per month than lease payments. The vehicle’s value will also depreciate, which is something to remember if you ever want to sell the car down the road.
But once the automobile is completely paid off, it belongs to you. You’ll no longer need to make monthly payments and will only need to pay for things like gas, insurance, and routine maintenance.
LEASING OFFERS PERKS WITHOUT THE COMMITMENT
If you’re eyeing a certain trim level of a new vehicle, but buying it may not be an option, leasing could be your best bet. This is also a good choice for drivers who love getting the latest features every few years.
While leasing lets you get the newest state-of-the-art amenities, you can’t make any big cosmetic changes to the vehicle. This is because you’ll need to return it the dealership in the same condition as when you first got it. Otherwise, you could be paying a fee.
However, if you decide to buy it instead of getting another lease after the term ends, you’ll then own it and can customize it any way you want.
Another thing to remember about leasing is the monthly payments. You’re mainly only paying for the depreciation of the vehicle’s value during a lease term (usually about three years), plus taxes and other fees. As a result, lease payments are generally lower than loan payments.
But while they’re typically lower, you’ll need to think about mileage and maintenance. Before signing a lease contract, figure out how many miles you’ll be driving per year. Most leases have a 9,000- to 15,000-mileage cap, with 12,000 being the average. If you go over your miles, it could result in overage fees. You also need to make sure you keep up with routine maintenance. This will not only adhere to the terms of the lease agreement, but it’ll also ensure the safety and performance of your vehicle.
LEARN MORE TODAY
If you still need more information on buying vs. leasing, or have decided which method you prefer, CONTACT OUR FINANCE DEPARTMENT at Ira Lexus of Danvers. We love helping drivers in the North Andover, Peabody, and Danvers areas drive home in their ideal vehicle, and we look forward to working with you.
