If you’re wondering whether to buy or lease a car, you came to the right place. Both methods have their positives and negatives, but you won’t go wrong with either. Keller Used Car has been serving Hanford and neighboring areas for over 35 years, so we know how important it is for you to have options best suited for your needs. Here are a couple of ways that both buying and leasing a car can be beneficial towards you!
Owning The Car
When you buy the car, it’s pretty much yours to keep if you pay with cash. You can do whatever you want with it for however long you keep it. While you are owning the car, there’s also no need to worry about how frequently you keep your car in top shape. When you lease your vehicle, you are expected to return the car back to the dealership once your lease is up. The dealership also requires you to pay any fees for damage and wear and tear that happens to the car. When you lease, the dealership gives you certain dates for necessities such as oil changes, coolant fill ups, and other fluid changes. Owning gives you the chance to maintain your vehicle on your own time. If regular maintenance isn’t much of a concern, then owning the car may be the way to go.
When you lease a car, underestimating how many miles you put on the car becomes something worth noting. Before leasing your vehicle, your dealer will give you a deadline to return and mileage limit for your car in which you sign for on the leasing contract. Getting a new car can be exciting for many and getting to drive the car can be even more tempting. You may even get ahead of yourself once you reach a certain amount of miles. However, when you buy a car, you can drive for however many miles you want with no charges at all. Each mile for a leased costs about 25 cents. That’s equivalent to $250 for every 1,000 miles you go over. So if you don’t want to end up paying more money, buying may be the right suggestion.
Monthly payments are required for any car that you lease. Since you don’t keep the car forever, you must pay a down payment and monthly for the lease itself. This can be overwhelming as you also pay for insurance on top of that. When buying a car, it’s a good idea to pay with cash so that you avoid the financing process if that’s something you’re not planning on dealing with. By not financing, you won’t have any monthly payments even if it means keeping the car however long you want. Buying a car may seem expensive when you take a glance at the price, but once you pay the total amount, it’s worth it at the end of the day.
Latest Technology And Modifications
Every customer knows how great it would be to have the best features on their new car. When leasing, you have the option of getting the car you want with any included technology of your choosing. The tech that you get will normally be newer since people are most likely to lease the newer models. However, you won’t be able to go to a car shop and add extra things to your car since you don’t own it. If you want to buy a car, you get to customize it however you want, inside and out. If you end up getting bored of the features, you can sell the car so that you don’t get stuck with unwanted features.
Warranty protection is only for customers who are looking to lease or buy a car. If you were to damage your car, your warranty guarantees that it will cover any damage that is present. There are five different warranties a dealer can offer you; bumper to bumper coverage, roadside assistance coverage, drivetrain/powertrain coverage, federal emissions warranty coverage, and rust/corrosion coverage. Keep in mind that having all coverages are costly, so we would recommend getting the ones that are most important to you. The different kinds of warranties vary depending on the dealer. It’s always important to keep up with any inspections to avoid any voided warranties.
It’s good to know what your car may be worth when you’re done with it. When buying a car, the future value of it will depreciate but it’s cash value won’t. This means that you can sell the car for around the same price that it was when you drove it off the lot. There are a couple of factors that can affect the future value of the bought car such as new vehicle prices, gas prices, and auto industry competition. When you lease your car, the future value won’t affect you in any way because the car doesn’t belong to you. In fact, the value is impossible to determine once your lease is finished.
If you’re ever worried about not having a good enough credit score to buy a car, just know that many dealers will take more or less than 700. Edmunds recommends that you have a credit score of at least 680. Even having less than that is still ok but if you have anything under than 500, it’s a red flag for most dealers. Your credit score when buying a car can affect your car loan rates for new and used cars. When leasing, it’s not the end of the world if you have bad credit. However, it makes it more difficult to have options for which car you want. You will also pay a higher down payment if your score is low.
There’s no right or wrong answer for both options. There are many factors that come into play when buying or leasing a car. So if you’re still deciding whether you want to buy or lease, then come to Keller Used Cars in Hanford today and talk to one of our trusty salesmen. We will make sure you get the help you need!