Should You Lease or Buy Your New Car?

I have been trying to decide if I should lease or buy a new car. I called Hayes Dodge and Chrysler Company and talked to Dusty Hayes about the pros and cons of buying and leasing a vehicle. He was very helpful in educating me on the advantages and disadvantages of leasing, and of purchasing a new car. Buying a car is probably one of the biggest investments one might make, other than buying a home. Every time I bought a new car I noticed that after it was completely paid for it was ready to break down. Many car loans now are for 6 years. That is a long time to pay for a car. But what is another option? You could lease a car instead. There are advantages and disadvantages to leasing, just as there are advantages and disadvantages to buying a vehicle.

Purchasing a vehicle

The advantages of purchasing your vehicle are obvious. When it is paid for it is yours. You can do what you want with it. You can soup it up, or you can change the interior if you want. You can paint it. A great thing about owning your vehicle is that you can put as many miles on it as you want without having to pay a penalty.

The disadvantages of purchasing your vehicle are that it has depreciated so much in value. You may not get much of a trade in value, when you are ready to purchase another one. Something common to new vehicles is that they wear out over time. By the time it is paid for your vehicle may be a lot worse for wear, considering on how well you took care of it during that time. My dad babied his vehicles and they stayed in great condition long after they were paid for. It really depends on the structural and electronic integrity of the vehicle and the diligence of the owner to take care of the vehicle. If you pay off your car loan early, you will probably still have to pay the interest on the loan. If you call your financial institution they will give you a pay off figure.

Leasing a Vehicle