Learn / Car Buying Buy or Lease Your Next Car? Featured Image Are you the type to want a new car every few years or do you drive a car until the wheels fall off? Making the decision to lease or buy your next car depends on the type of driver you are and what kind of vehicle you want. We’ve provided some pros and cons of leasing and borrowing to help you make your decision. Buy new, buy used, or lease? Buying a new car Advantages You can order the exact make, model and options that are most important to you There are consumer protection laws on your side The car has value and becomes an asset as the loan is repaid New cars are typically most reliable Most warranties cover repairs and parts Disadvantages New cars can be very expensive - with a high purchase price, requirements for full insurance coverage and costly registration fees The value of the car depreciates almost immediately Buying a used car Advantages You may be able to use savings to purchase the car outright Used cars are less expensive than new cars As your loan is repaid, the car becomes an asset Disadvantages A used car's history is usually unknown The car may have been insufficiently maintained, and therefore less reliable Used cars rarely have warranties Older cars tend to wear out and the maintenance costs will increase over time Leasing a car Advantages The monthly payments are comparatively low Lower down payment Leases are relatively short-term, so you can drive a new car every few years Typically, leased cars have comprehensive warranties The required up-front cost of a leased car is low You can often get a luxury model for low monthly payments Lower repair costs No trade-in hassle or value depreciation concerns Disadvantages The car does not belong to you It is very difficult and expensive to get out of a lease contract The cost of insuring a leased vehicle can be very high You must have good credit They come with mileage limitations (often 10,000 to 15,000 per year) You must pay for any additional mileage or damage beyond basic wear and tear Typically, financial experts agree buying and keeping a car for the long term is usually a better deal. However, if you are frequently trading-in and purchasing cars every few years, leasing may be a better option. In the end, your decision will come down to your budget and your driving needs. Our affordable car loans offer you the same low rate whether your car is new or used. Learn more about car loans
How to Buy a Car: 5 Essential Steps The car buying process can be daunting, but with the right tools and resources, it doesn’t have to be. Fuel your lifestyle and find a new car today.
9 Steps to Smarter Car Buying Purchasing a vehicle can be a daunting task because there are so many decisions to make.