Buying vs. Leasing

Yonkers Buying Leasing | Westchester County Preowned Car Dealer

When it comes time to get a new car, it can be an extremely tough decision financially. With so many different aspects to consider, it can be a stressful and daunting process. In order to help alleviate some of the hardship, we’ve put together a quick guide to help you. In this post, we’ll discuss both the benefits and drawbacks of leasing a car versus buying one instead.

When it comes to leasing, there are a number of positives to consider. One of the main bonuses is that you may be able to get more car for your money due to the fact that a loan to buy a car is based on the full price of the vehicle, but a lease is only based on a percentage of the car’s value.

There are several drawbacks you have to consider as well when it comes to leasing. You’ll be limited on your mileage; typically, you’ll be allotted either 9,00, 12,000, or 15,000 miles per year of your lease. The more miles you need, the higher your monthly payment will be as a result. You also don’t have much wiggle room when it comes to any sort of alterations or additions you may want for the vehicle.

Financially, you’re essentially just renting a car for several years and paying interest on it at the same time. When you turn your car in, you either have to start a brand new lease or purchase an entirely different vehicle. You also may not be approved to lease unless your credit score is relatively high.

The other option you have is purchasing a car. This is your best bet if keeping the vehicle long term is something you prefer. Each payment you make gets you one step closer to paying it off, which many people would rather do in the long run. You also won’t face any type of mileage restriction, and can essentially do anything you desire to the car inside and out.

There are quite a few downsides, however. The longer you keep a car and the more miles you put on it, the lower the value of it becomes. So, if you’re going to eventually want to sell your paid off vehicle, the profit won’t be nearly as high as the amount of money you’ve been putting into it. You should also keep in mind that you’ll need a significant down payment: typically 10 to 20 percent of the total cost of the car if you’re using a loan. Loans can also become problematic if you face some financial hardships and need to extend it out even further, costing you more over time.

The decision to buy or lease a vehicle is totally dependent on each customer. Here at Yonkers Automall, we can help you with that decision quickly and efficiently! Head on over to our website today to start the process of finding your dream pre-owned vehicle today!

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1716 Central Park Ave
Yonkers, NY 10710