Owning or Leasing: What to Do?

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Once you are in the market to buy a new car, it can seem like every billboard, television ad, or radio commercial is speaking directly to you! These adverts offer compelling reasons for both leasing and purchasing new cars. Sometimes it’s hard to decide which option is the best for you. It’s important to understand all the conditions involved in a lease before making a final decision. There are advantages to owning a new car that are not available to the person who chooses to lease a vehicle.

Benefits of Owning Your Car

According to Rockland Toyota in Blauvelt NY, when you purchase a new car, it is yours without restriction. If you want to airbrush an image of your pet on a door, add a spoiler, or tint the windows, you don’t need to ask anybody for permission. Other benefits include the following:

  • There is no limit to the number of miles you put on the car. Whether you want to tour the United States or you just have a long commute to work, you can do so without worrying about the distance. When you lease, there is a set number of miles you can drive each year. If you go over, there is a set charge per extra mile. You do not get to roll over any unused miles.
  • Your monthly car loan payments are lower when you purchase to own. You make your arrangements with the bank, credit union, or lending company and know exactly what your payments will be before you purchase your car. When you lease, there are several extra charges that are added to the price of the vehicle, and the finance charges are higher. You end up with higher monthly payments.
  • According to Edmunds, when you own a car, you can trade it in or sell it whenever you want to. If you decide the car is too small for your family, or you just want to try something new, there are no financial penalties involved. When you lease a car, you do not have that flexibility. If you decide you don’t want the car anymore, you can’t just turn it in. You can be charged thousands of dollars over the cost of the car.
  • Most auto repair experts suggest that proper maintenance and care will allow you to drive your car for a few years after it is paid off. You can save the amount of your payment each month and be earning interest on it. When the time comes to purchase a new car, you will have the funds to make a large down payment and pay for any fees associate with registering it. When you pay off a lease agreement, the car goes back to the dealer. You have to sign a new lease with high monthly payments.

The decision to own or lease is up to you, but be sure you know the pros and cons of each before making a decision.