Do you know all the pros and cons of each option?
There are several factors to consider when deciding to buy or lease a car, as both options have several benefits and downsides. For example, in addition to the monthly lease or loan payment, you need to consider how much you plan to drive, how often you’d like a new car, and if you plan to customize.
Benefits of buying a car
There are several advantages to owning a car, as opposed to leasing. Here are just a few of the most important ones:
- You own the asset — Assuming that you finance the car, it can take a few years to build up any serious equity (where you owe less than the car’s value), but eventually you’ll have an asset that can be sold or traded in if needed.
- No payments once your loan is repaid — When you buy a car, you’ll eventually pay off the loan and own the car free and clear, at which point you’ll no longer have a monthly car payment. When you lease, you’ll always have a car payment.
- No mileage restrictions — If you own your car, you can drive it as much as you’d like without having to worry about paying a penalty. On the other hand, if you lease, you’re generally limited to 10,000, 12,000, or 15,000 miles per year before you’ll start accumulating penalties.
- No charges for excessive wear — When you lease, you’ll generally be held responsible for anything that could be considered beyond “normal wear and tear.” If you get a dent in a car you own, for example, you can choose to fix it or simply live with the dent and save the money.
- Customization — A vehicle you own can be modified or customized as you see fit. Leased vehicles need to be returned in their original state, so any modifications will need to be removed, which is often impossible or very expensive.
Benefits of leasing a car
On the other hand, leasing has its advantages as well:
- A new car every two-to-four years — Simply put, if you enjoy having a new car, leasing could be the way to go.
- Little or no maintenance worries — For the most part, leased cars are under factory warranties throughout the term of the lease agreement. In my case, this is the primary motivating factor for leasing — I don’t like uncertainty, especially when it comes to potentially costly repairs. Leasing allows me to avoid this worry.
- Cheaper monthly payments — While it depends on the particular make and model, as well as factors such as your down payment, you can generally lease a car for less money per month than it would cost you to buy it. In full disclosure, I lease my car, and the difference between my lease payments and what the payment would have been on a 60-month car loan was about $150 per month. When you lease, you’re only paying for the vehicle’s expected depreciation and associated charges, not for the residual value of the vehicle.
Are you a female or a first time buyer that feels uncomfortable going into a car dealership to look at a vehicle? If so, here are 5 tips to help guide you into feeling more comfortable the next time you need to purchase a vehicle.
1. Research the models and prices online and know what is a competitive offer.
2. Check Car Fax or Autocheck to research a vehicle’s history.
3. Ask the dealer for the customer contact information that traded in the vehicle if you are looking for pre-owned.
4. Ask for service history and service work that was performed on the vehicle at the dealership.
5. Check guidebooks such as Kelley Blue Book or NADA for a fair purchase price on your trade in.
If you are considering Monken Automotive as a potential car dealer, we would like to inform you on a few ways we believe you will be more comfortable, including 14 female employees that are available to help you.
Walking into a showroom can be intimidating, therefore, we have 4 female employees in our Chrysler Nissan sales area. They are our Receptionist Desk, Office Manager, Internet Sales and General Manager. In our Chevrolet Buick GMC store, we have 5 female employees. They are our Reception Desk, Title Clerk, Office Manager, Accounting and our Owner. They are all available and willing to lead you in the right direction.
Driving into a service department can be just as intimidating. We have 5 female employees that work in our service departments and will help you with any questions about servicing your vehicle. At our Chrysler Nissan store Amy Monken-Brandt started as a service advisor 19 years ago and is now our Service Manager. Dorothy Cates has been in our service department for 5 years and Mel Jackson for 4 years. At our Chevrolet store, Amy Zalos is our Service Manager and has been with us for a year and we just hired Heather Hoffman.
Being able to talk to a female service advisor should encourage you to ask any questions without feeling lost or embarrassed. “We are not tech savvy, but we want to make sure your needs are met. We can ask the technicians their concern and put it into terminology that you will understand,” adds Service Manager, Amy Monken-Brandt.
Our waiting areas were created to make you feel as comfortable as possible. We have television, an Apple computer with internet access, vending machines, free popcorn and updated seating… all to make you feel at home.
Here is a review from one of our female customers.
Sara Presley Burnett reviewed Monken Dodge Chrysler Jeep Ram Nissan — 5 star
October 14 ·
“As a woman, I was expecting them to think I didn’t know what was going on and to try to take advantage of me. What I got was the complete opposite. I couldn’t have been more pleased with the way I was treated and respected. I have already recommended them to everyone I’ve talked to about my new car. Very happy and I will definitely be back for my next one.”