Buying vs Leasing: Which is best for you?

When the time comes to trade in your old car and hit the road with something new, there are  lot of decisions that have to be made before you sign the final papers and pull off the lot. One of the main decisions is identifying whether purchasing or loaning a vehicle is the right choice for you. There are benefits and downfalls to both; it all depends on your lifestyle and what you are looking for in this new car purchase.

At University Volvo, we have excellent deals on vehicles to lease or purchase, and we are here to help address any questions you may have. We have gathered some benefits and some downfalls to each that should help start your decision process.

Benefits to Buying:

  • When you buy a car, you are the owner of the car and can do with it what you want. You have the ability to add or upgrade any customizable features, have the windows tinted or even have the car repainted.

  • If you are the kind of person that likes to drive a car for at least 6 years, buying a car would be the best option for you. Once you complete your car payments you can continue to drive the car for as long as you want to.

  • Bottom line: you have total freedom with your car once it is purchased.  If that is important to you, buying is for you.

Downfalls to Buying:

  • A higher down payment and higher monthly payments are usually required when buying.

  • You don’t want to ever sell your car when you’re in the red, so you are somewhat locked into owning your car until it is paid off.

  • Depending on the length of your loan, interest will be added on and you will end up paying more than the original price tag.

Benefits to Leasing:

  • You only have to sign for a set amount of months. Most dealerships offer specials for signing a 36 or 39-month lease, both of which are offered at University Volvo.

  • When you are leasing a car, most maintenance and repairs should be covered during your lease period under warranty, since you do not own the car.

  • Bottom line: If you like to always have the most recent make and model of a car, leasing is for you.

Downfalls to Leasing:

  • You don’t have much freedom when it comes to customizing the car for you, since you will likely part ways with the car after your lease term ends.

  • Dealerships often require a very good credit score to obtain a lease.

  • Most lease agreements at University Volvo allow 10,000 miles on the vehicle per year. If you go over that limit, you will be responsible for paying the difference at a per mile rates.

No one can make this decision for you, but hopefully now that you have more insight into the pros and cons of each option you have a better feel for what you are looking for. Come by University Volvo today or contact us to learn more about different lease and purchase options we offer!

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