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Getting a new car: Lease or Buy?

Getting a new car: Lease or Buy?

Should you lease or buy?  You want to get behind the wheel of a car, but you’re not sure which financing route will work best for you.  How can you be sure that the choice you make is the right one?  Let’s discuss the differences between buying and leasing so you can figure it out.

 

Leasing

When you lease a vehicle in Burlington, you have the opportunity to drive a brand-new car for the best years of its life.  Leasing often also means you can drive a car you couldn’t afford to buy.  Lease payments are lower because you’re not actually paying the full price of the vehicle.

 

Since most leases are only three to four years, you’ll likely be under warranty for any repairs you need done.  Driving a late model vehicle generally means fewer repairs anyway.

 

Trade-in values and re-selling are topics that you don’t even need to think about!  When your lease is up, you drop it off at the dealership and you’re done.

 

However, leases come with mileage limitations.  If you’re someone who drives a lot, you’ll be paying a penalty at the end of your term for extra kilometers.  People who don’t tend to drive hundreds of kilometers a week would do well on a lease.

 

You also have to keep your leased car in tip-top shape.  Remember: you’re essentially borrowing it from the dealership for a few years.  They want it back in the best condition possible, and if it’s not, you better believe there will be fees for that as well.

 

Buying

The most obvious benefit of buying a car in Burlington is that you own it.  Even if it takes you 5 years to pay it off, in the end, it’s all yours.  If you want to modify it, fill it with building supplies, or drive in the mud until the car is permanently caked in it, go ahead!

 

When you get tired of your car you can always trade it in or sell it.  If you still owe on it, proceeds from the sale can go to pay off the loan, or the trade-in value would be applied to your new vehicle.  There’s no time limit on this, either.  Of course, if you wait until your car is 15 years old (or perma-muddy) you won’t get top dollar for it.

 

Unlike with a lease, you don’t need to worry about how many kilometers you drive.  When you buy your car, you can drive it to your heart’s content with no worries (well, no worries about penalties).

 

Car ownership can end up costing less in the long term than a lease.  When you buy a car and pay off your loan in six years, you can still drive the car.  You could keep the same vehicle for another 10 years, depending on how much wear and tear you put on it.

 

By comparison, your lease term may end after three years, and you’ll need to enter into a new lease for three more years.  Then you could buy out the car (costing thousands) or end it and start another lease.  Your monthly payments will never end.

 

Conclusion - To Lease or To Buy?

In the end, only you can look at your needs and habits and decide whether to lease or buy.

 

Do you want the newest car every few years with no major commitments (three years really flies by!)?  Then lease away, my friend.

 

If you’re someone looking for a long-term commitment and plan on driving the same car for years to come, getting a loan to finance the purchase is the way to go.

 

Used cars can be significantly less expensive than new cars.  For less money you could still be driving your very own car for years to come.

 

If buying a car is for you, get pre-approved for financing today and get on the road to ownership!

 

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    Categories: Burlington, Finance

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