Buying and leasing both provide unique benefits. Leasing offersa low-risk way to drive a nice vehicle in good condition. However, there are limitations to leasing that scare off owners who value their independence. Ownership provides an unconstrained ownership experience, but is riskier and may cost more. As every sitcom has taught us, nothing makes a decision easier than a Pros vs. Cons list. Our team at Go Auto Outlet hope this helps:
Pros of Vehicle Ownership
By financing a vehicle purchase, you’re actually retaining a portion of your vehicle payments. When you lease a vehicle you’re essentially renting it, whereas ownership builds personal equity and future trade-in value.
Since you own the vehicle, you can make any modifications you’d like and service the vehicle at your own schedule. Leases sometimes contractually-require dealership inspections and/or service that may prove both costly and unnecessary. Leases may also limit your ability to get the non-factory limo tint and chrome running board you were eyeing. They come with limits to how many kilometers you can drive for during the agreement term, penalized by costly end-of-term fines. Additional fees outlined in the small print of your lease contract may also be charged such as paint chip repairs, overdue service, and interior detailing to name just a few. Avoid these charges by owning your vehicle and deciding which repairs are necessary for you.
Cons of Vehicle Ownership
While ownership offers greater flexibility, leasing may offer better financial benefits. First of all, you should avoid owning depreciating assets—which virtually all vehicles are. Every kilometer you drive causes wear to the car, and quickly decreases its value. Leasing allows you to drive a vehicle during its best years, and then leave it as maintenance and repair costs begin to grow.
Purchasing a vehicle also exposes you to tax and financing payments. This adds thousands of dollars to the true cost of your vehicle, so be conscious of them while setting your budget. Also, be aware that the ownership term only ends when you get rid of the vehicle. Leases allow you to drive to the dealership and walk out of the vehicle. When you own it, you’re on the hook for privately selling a used (and possibly abused) vehicle.
If owning sounds like the best option for you, view our inventory and apply for financing to get started. If you’re still unsure, you can read more about the topic in this blog post. We at Go Auto Outlet hope that this makes your decision to buy or lease a little easier.