Buy vs Lease at Audi Hilton Head Near Savannah

Should I Buy Or Lease A New Vehicle?

Perhaps one of the biggest questions in the new car buying experience is, should I lease or loan? These financial options are completely different, but they are both viable choices, so how do you choose? The answer basically boils down to what your lifestyle is like and what your financial preferences are. Here are some of the pros and cons of each choice.

Buying

Not too long ago, purchasing a vehicle was the only option when it came to getting a new car. If you decide to buy instead of lease, then you will most likely have to apply for an auto loan from either the dealership, bank, or other lender. Over time, you pay off the loan, in monthly increments, and, once the loan is paid in full, the vehicle is yours. Let's break down the pros and cons of buying a vehicle.

Buying Pros:

  • Once the loan is paid off, you completely own the vehicle.
  • You can add any accessories that you want or modify the vehicle in any way.
  • Mileage is not an issue when you're loaning. Drive as much as you want with no penalties.
  • Has your life changed? Do you need to buy another vehicle? When you're loaning, you can sell your car whenever you'd like. When you're leasing, you have to wait until your lease has ended.
  • When it's time to buy a different car, you can use your current loaning vehicle as a trade-in. Put the money towards the new car and get rid of your old vehicle all at once.
  • For the most part, loaning a new vehicle will save you money in the long run.

Buying Cons:

  • Loans require a higher down payment than leasing.
  • The monthly payments in a loan are normally higher than a lease.
  • Once the new car warranty has expired, you will have to pay for any repairs or maintenance that comes up.
  • New cars depreciate in value as soon as they leave the lot
  • It can be difficult to sell a vehicle when it's time and you may have to deal with haggling and other hassles.

Leasing

Leasing is great for the person who wants to spend less money, that doesn't drive a lot of miles, and is ok with having a set car for a certain amount of years and then giving it back. Basically leasing is like renting a new vehicle, but for a smaller monthly payment than a loan. Here are some of the pros and cons of leasing.

Leasing Pros:

  • Like we mentioned above, when you lease you tend to have lower monthly payments.
  • Leasing requires a low, or no, down payment.
  • Repair costs are minimal due to the lease's warranties
  • Once the lease is over, you do have the option to switch to another lease, which normally happens about every two to three years. This means that you can lease a brand new model every three years instead of sticking with your old one until it dies.
  • You'll pay less sales tax.

Leasing Cons:

  • Once the lease is over, you don't own the car (unless you purchase it afterwards).
  • Mileage is limited, to normally around 12,000 miles a year, and if you go over you'll have to pay a fee.
  • Long term, you'll pay more for a leased car than you would for a loaned one.
  • If you decide you need a different vehicle for any reason before your lease is up, it will cost you to terminate your current lease.
  • All vehicles receive wear and tear, but when you have a lease you could be paying fees for those bumps and bruises when your lease is up.

Will You Choose Leasing Or Loaning For Your New Audi Vehicle?

Deciding which option is best for you is all about your preferences. Do you drive a lot? Then probably a loan would be best. Are you happy with upgrading to a new vehicle every three or so years? Then why not pay less money a month with a lease. Do you want to own your car when everything has been paid off? Perhaps you should buy your vehicle. Would you rather leave most of the maintenance and repairs to the company you're leasing from? Maybe a lease would be the better option.

Whatever you decide, or if you still have questions concerning your lease or loan options, feel free to contact us, here at Audi Hilton Head. We would love to answer whatever questions that you may have and look forward to helping you drive home, whether that be to Savannah, Hardeeville, Garden city, Hilton Head Island, or Bluffton, in your new leased or loaned Audi vehicle today!

 

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