Financing a car can be a confusing process. With many trade-offs, it’s difficult to decide between leasing and buying. Going through the process, it is important to know the benefits of each option and how they fit into your lifestyle and unique preferences. At Kennedy Transmission, we care about protecting your investments, which is why we’re breaking down the pros and cons of leasing or buying a car. And when it’s all said and done, be sure to bring your vehicle into your nearest location to make sure you get your money’s worth.
Benefits of Leasing
Despite the often confusing terminology, leasing a car is like long-term renting. When you lease a car, you’re only paying for the time you use. Because the car’s lifecycle extends beyond one lease agreement, you only need to fund a portion of the car. If you like switching it up often and staying up-to-date on the latest technology and products, leasing may be the best option for you. There are numerous benefits to following a leasing structure, including:
- Lower down payment, if any
- Smaller monthly payments
- Limited sales & property taxes
- Fewer servicing fees, with the included factory warranty
Benefits of Buying
When you buy a car, you are purchasing it in full, often spanning several months. With ownership of the vehicle, you will have more freedom in what you do with it. This option is typically better for people who prefer to keep their car for a long time or don’t like following certain restrictions. These are just some of the benefits of buying a car:
- No mileage limits
- Ability to modify features
- Potentially fewer repair fees – not required to fix cosmetic repairs
- More economical over the long-term
Other Factors to Consider
While leasing is typically better in the short-term and buying in the long-term, you’ll also need to think about your circumstances before and after financing the car. For example, leasing requires better credit. But at the end of your lease, you won’t have to deal with any trade-in hassle or schemes. On the other hand, if you buy a car, you’ll have the flexibility to sell it to whomever, whenever you want. If you are still debating whether to buy or lease a car, use our Car Cost Calculator. This will give you an idea of the discrepancies between fixing your car and financing a new one.
Pro tip: If you’re leaning towards a lease, talk to your auto insurance provider about gap insurance, which pays the difference between fair market value and what you owe in the case of totaling the car.
Keep Your Investment in Tiptop Shape at Kennedy Transmission
Regardless of the financing option that’s right for you, take care of your investment at Kennedy Transmission Brake & Auto Service. With a variety of service options, we can take care of any automotive problem that may arise. Find a service location near you for repairs you can trust to keep you safe on the road.