Leasing Vs. Buying

When people visit car dealers in Rhode Island, they face the choice of buying or leasing. Since each person’s needs differ, some individuals may benefit from one option more than the other. Before visiting any RI auto dealer, consider all of the following factors before making a decision:

Leasing

Leases are popular among people who want to drive a new car without paying the new car price. The following are also advantages of leasing:

1. The vehicle is always under warranty.
2. Drivers are able to enjoy a car that would normally be out of their buying price range.
3. The required down payment is low.
4. In some situations, leased vehicles for business purposes may be tax deductible.

Although many people enjoy paying less for the privilege of driving a top of the line, low-risk vehicle, leasing also has the following disadvantages:

1. There is an annual mileage cap, which is usually 15,000 miles.
2. Driving beyond the mileage cap incurs extra charges.
3. While major repairs are covered under the warranty, it is still necessary to pay for regular maintenance.
4. If the driver wishes to purchase the vehicle at the end of the lease, it is more expensive to buy it.

Buying

People who want to eventually free themselves of monthly car payments usually prefer to buy. In addition to eventual ownership, buying offers the following advantages:

1. Drivers have the ability to customize or modify their vehicles.
2. When the vehicle is paid off, the owner enjoys a feeling of accomplishment.
3. After the vehicle’s warranty expires, there are no restrictions for self-performed repairs.
4. Since there is equity, the vehicle can be traded in or resold.

While there are few disadvantages to buying a car, the following are points that some people may find unattractive when it comes to buying:

1. With each year that passes after paying off the vehicle, its resale value depreciates.
2. After the car’s warranty expires, the owner must pay for all repairs.

There is also the option of buying a Rhode Island used car. To decide between leasing, buying new or buying RI used cars, consider personal driving requirements. Which option best suits your lifestyle?