Buying vs. Leasing
If you're looking for a new Ford near Seneca or deciding to get any new car, one of the tougher decisions in the process is whether to buy or lease the vehicle. To help make that decision easier, we broke down the major pros and cons of buying and leasing.
- Ownership. If you lease a vehicle, you won't retain any value from your payments once your lease is up. Buying a car allows you to keep that asset once you finish off your car payments; you'll either be payment-free with your old vehicle or able to resell that car once you decide to get another one. In the long-term, it's more economical to buy than own if you keep your car for a long time.
- Limitless travel. Leased cars usually have restrictions on how many miles per year you can put on a vehicle. Monetary sanctions for going over these limits can be severe. With an owned car, you don't have to worry about capping your travel to fall under yearly limits.
- Higher payments. When comparing the same vehicle, monthly payments are usually higher on purchased cars than leased cars. Since you’re getting the car for its full life cycle, it costs more per month than a lease in the same duration.
- Repair costs. Many of the repairs necessary during lease terms are covered by warranties that extend through the full duration of the lease. When you buy a car, though, as soon as the warranty expires, repairs get significantly more expensive. It's a bigger commitment with added responsibility.
- Lower payments. If you have less money to spend up-front or want to spend less on monthly payments, leases are more affordable in the short-term. If your company provides a monthly vehicle allowance, you can maximize that amount by leasing instead of buying.
- Newer vehicles. Leases usually are on brand-new cars, and terms typically run somewhere between 2-4 years. That means every few years, you're able to drive a different new car. There's more variety and more frequent upgrades.
- Mileage restrictions. Leases limit how far you can drive your vehicle per year, usually between 12,000 and 15,000 miles per year. If you exceed that set amount, expect to pay a per-mile fee between 15 and 25 cents. That can add up if you’re a frequent traveler.
- No asset gain. Once your lease term ends, the car either returns to the dealership or you decide to buy it and begin monthly payments toward ownership. Having to give up a vehicle without anything tangible to show for your costs of leasing may feel like you’re left with nothing to show for the thousands of dollars spent.
At Lake Keowee Ford, we've found that it really depends on each individual buyer, that there's no right answer for everyone. Whether you should buy or lease popular Ford models like the F-150, Focus, Mustang, or more is a personal choice based on your current situation.
If this guide made your decision a bit clearer, check out our new inventory! If you still need some help, give us at Lake Keowee Ford a call at 888-663-0395 and we'd be happy to present some options.