Our team has been fielding more questions than usual about whether they should lease or buy a new car. so we through we would revisit this age-old question. Which is best for which type of situation?
We asked our Dundas auto loans team to explain the pros and cons to lease or buy a new car, to help you make an informed decision.
Pros of leasing a car
There are some significant benefits to leasing a car.
Lower monthly payments – A typical car lease is cheaper per month than a Dundas auto loan, which can be a significant benefit.
No warranty or maintenance worries – Most leases come with full servicing and warranty so your running costs will be minimal.
Drive a new car every 2-3 years – If you like driving the newest cars, leasing allows you to drive brand new cars and switch them out regularly.
Cons of leasing a car
There are also downsides to leading a car.
You don’t own anything – Leasing is renting so you’re paying out each month but won’t actually own anything at the end of it.
Requires stable income – Leasing is a monthly commitment over a few years so will require a safe, stable income.
End of lease handover – The dreaded end of lease handover is when you’re usually faced with the inspection and end of lease charges.
Mileage limits – Lease cars will often have quite low mileage limits. Exceed that limit and you’ll usually have to pay cents per mile over the agreed mileage.
Pros of buying a car
There are also pros to buying a car.
You get to own the car – Paying for something each month when buying means you actually get to own something at the end of it. Unlike with a lease.
Freedom to customize or modify – Want to add a sunroof? Change the colour? You can only do that when you own the car.
No end of lease handover or charges – The car is yours so nobody will inspect it or try to charge you for every little ding or defect.
Cons of buying a car
It isn’t all positive when buying a car though.
Higher monthly payments – Even with a competitive Dundas auto loan, the monthly payment will usually be higher than a lease.
Repairs and maintenance – Owning a car means any repairs and maintenance is on you once the included servicing and warranty period is over.
As you can see, there are pros and cons to leasing and buying. If you’re a high mileage driver or aren’t worried about driving brand new cars all the time, perhaps buying is the right option for you.
If you prefer to be hands-off with maintenance and like knowing everything is covered or you like driving the newest models, a lease might be better.
We hope this article helps you decide to lease or buy a new car. Remember, there is no right or wrong answer here, just the answer that’s right for you. If you decide to buy and need a Dundas auto loan to buy it, our team can help.
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!
For any questions or concerns, please don’t hesitate to contact us here!