If you are visiting different car dealerships and are preparing to purchase a new car, you may be carefully reviewing features and pricing for different vehicles. Some people will purchase a used car in an effort to save money on their purchase, but many others love the experience of buying a brand new vehicle that nobody else has owned before. When you purchase a new car, you have the ability to either lease or buy your car. Before you finalize your plans about which Lexus you want to drive away in, you must first decide if car leasing or buying is a better option for you.
How Long You Plan to Own the Car
Leasing a car is not the best move for every driver, but in some cases, it can save you a small fortune. For example, if you plan to own the car for only a few years before you trade it in for a new one, car leasing makes sense. With leasing, you pay a small fee at the beginning of the lease, and you pay another small fee when you turn the car in. You do not have to worry about losing equity, fighting with car dealerships over the value of your trade-in and more. You simply turn the car back into the dealership and pay the fee.
How Many Miles You Plan to Drive
Another factor to consider before you lease or buy relates to mileage. Car dealerships want to ensure that the vehicle they lease to you will still retain some value and will therefore be able to be sold in the future. With this in mind, a car lease agreement typically states the maximum mileage you can put on the vehicle. If you go over this mileage, you will need to pay a per-mile fee to the dealer when you turn the car in. If you plan to drive more than the allotted miles, you may need to consider if the additional fee is worth paying for. In some cases, those who will heavily use a car may be better off buying a car outright.
The Equity the Vehicle Will Retain
Comparing the options to lease versus buy should be done from a financial standpoint. You can compare the upfront and turn-in fees as well as the monthly payment for leasing, and you can compare the down payment and monthly loan payment for buying. With the buying scenario, focus on what the vehicle may be worth when you trade it in versus how much you will still own on the car. You can use a car loan amortization calculator online to determine this with accuracy.
When all factors are considered, you will see that there is a clear winner between the two. Each Lexus driver has different criteria that he or she is reviewing, so there is not a right answer to all situations. By taking time to review these points, you can make a better decision for your needs. Learn more information and find additional resources at the Lexus of Windsor website.