Car ownership options, lease or buy?

Car
ownership is still a fundamental part of how we live and is likely to be for
many years to come. Unless you live in the centre of a city and it's simply
impractical to own one, chances are you will own or have access to one or more
cars. If you don't and are in the market for a new car, do you lease or buy?

There are
pros and cons to both and as responsible auto dealers who can provide access to
both, we thought we would highlight those pros and cons.

Car leasing

Car leasing
is essential hiring a car for the longer term. It allows you to have a car with
no down payment and enables you to have a more expensive car at a lower price.
This is enough for many people, as well all want a little luxury in our lives
don't we?

Say you
want a car that costs $40,000. A lease would charge only the depreciation price
of that car plus a little for profit and running costs for the leasing company.
So rather than having to pay the whole value as you would with buying the car,
you only pay the difference between the purchase price and what it would be
worth after you finish with the lease.

For
example, that $40,000 would likely be worth around $20,000 after a three year
lease, so your cost would be that $20,000, plus a little for administration of
the lease. With that in mind, it could take a payment down from $800 a month to
just $400 a month, which is how you could afford a better car.

The
downside of leasing is that you do not own the car, have to keep it in
excellent condition and cannot modify it in any way. The upside is that it's
cheaper and you get to change your car every few years and servicing, repairs
and maintenance will often be covered under the new car warranty.

Buying a car

Unless
you're lucky enough to have the cash, chances are you're going to need to trade
in and/or get a loan. As mentioned in our example above, a loan for $40,000
could run up to $800 a month, which is beyond many people. Even if you can
afford it, that's quite the chunk of change.

The benefit
of car ownership is that once you have paid for it, it is yours to do with as
you will. So while you will pay more for the loan, after the term, those
payments stop and the car is yours. Lease payments will never stop.

The
downside of owning a car is that the responsibility for servicing, repairs and
maintenance will fall to you. However, look after the car, service is
regularly, drive responsibility and that shouldn't amount to too much.

Buying or
leasing is down to personal preference and your circumstances. One is good for
one may not be good for another. If you would like to discuss your options,
come visit us at Betterway Sales & Leasing, 289 HWY #8 , Stoney Creek, ON,
L8G 1E5.