Now that you’ve started on your car buying journey in Live Oak, you’ll want to choose which is better: car ownership vs. leasing. There are pros and cons to each, and in the interest of making informed shoppers, we at Rountree Moore Kia think you should know all about it. Is leasing a vehicle better than financing? How do I factor in when it comes to leasing vs. buying? All of these questions and more will be answered by Rountree Moore Kia, your place for a quality new car.
Benefits of Leasing
If you’re a Macclenny driver and you choose to lease, you’ll be renting your vehicle for a temporary term (often, three years). Because the loan only goes to cover the value that you lose through the process of buying a car, your monthly payments will be much smaller. You also won’t need as large a down payment or pay a ton in sales tax. What other benefits do you have?
When Macclenny drivers choose to lease, they rent their vehicle for a temporary term (often, three years). Because the loan only goes to cover the value lost from natural wear-and-tear, your monthly payments will be much smaller. You also won’t have to make as large of a down payment or pay as much sales tax. Other benefits include:
- Warranty Coverage: The savings you get from leasing a vehicle will only increase when you take into account the fact that your vehicle will be in warranty over the entirety of your lease term.
- No risk of going upside down. When you get a car financed in the car ownership vs. leasing comparison, you might end up owing more on your loan than your car is worth.
Benefits of Financing
Leasing vs. buying also might refer to “financing.” That’s another term for buying. When you finance, you get a loan to pay off your car and with each payment, you chip away at the full value of the mode. When it’s time to sell, you’ll see the funds from the sale and add thousands to your bank account. This is more cost effective but it requires more commitment. You’ll make larger monthly payments with more money down and more sales tax, but you are building equity. The benefits of buying?
- You build equity. You’ll receive funds from a future sale, meaning part of your monthly payment is an investment in the value of your own assets.
- You build credit. When you build the value of your assets, you’re better qualified to secure a loan from banks. And when you reliably make payments on a large loan like a car loan, you improve your credit score.
Have More Questions About Leasing vs. Buying? Ask Rountree Moore Kia!
If you’ve got any further questions, Rountree Moore Kia would love to have you around to answer them. Contact us today to get started on your car buying journey. Ready to get treated right for a change? We’re waiting right here.
