Lease vs Purchase

225 × 225To lease your new car or to purchase…what is the best option?
The answer is it depends on your circumstances. Let’s explore both and see why.

Leasing a New Car

There are lots of good reasons to lease a car:
•    Lower monthly payments
•    Low or no down payment
•    New car every few years
•    If you drive for business, a portion of the car’s depreciation and financing costs can be deducted from your taxes. Car loan interest is not deductible.
There are also some disadvantages to leasing:
•    You always have a monthly payment
•    Over time you pay more for the same car
•    If you drive a lot, you may be subject to extra mileage fees
•    If you are hard on your car (or accident prone) you may incur wear & tear fees
•    Pet smells, smoking, and other difficult to remove odors may also be subject to damage fees

Buying a New Car

Buying a car certainly has more upfront expenses. Either you will purchase the car entirely with your cash reserves, or you will finance some or all of the vehicle. Regardless of how you pay for that new car, it is yours.

•    You own the vehicle and get to keep it as long as you want
•    You can sell or trade your vehicle at any time
•    You can customize or modify the vehicle as you like; you cannot do this with a lease
•    You can drive the vehicle as often as you like; there are no mileage penalties except depreciation
•    How well you maintain your vehicle is up to you; it may affect resale value but if you hold your cars for a long time, this is not a concern
•    Once the car is paid for, you have no further car payments (except tax, insurance, and registration which you have with a lease also)

If you are still unsure of which financing approach is best for you, try out handy payment calculator to determine your monthly costs or stop in our dealership and we would be happy to discuss options with you. If you have a trade-in, we can help you determine the value of your current vehicle.

With many great new and used cars available, we have a lot to offer! Contact us today.

Mazda of Olympia
Your Trusted Local New and Used Car Dealership!!!
(800) 678-9210
Categories: Lease vs Purchase