Are you debating leasing vs. buying for your next vehicle? Whether you want to buy a new or certified pre-owned model, you must think carefully. Should I buy or lease a car? At Liberty GMC, Inc., we know that car buying can be a time-consuming process. Below, we’ve put together a guide covering leasing and buying around Phoenix.

Leasing vs. Buying a Vehicle

So, should you buy or lease a car? Leasing a vehicle is very similar to renting one for a long-term contract. During this period, you will regularly be making monthly payments for some time.

You won’t be able to build equity as you would from outright buying the vehicle. You are essentially paying for the ability to use a car during this time, alongside an agreed-upon mileage limit. Once your car lease is up, you can trade your vehicle in. When this occurs, you can swap it for a new leased vehicle, buy the existing one outright, or end your lease.

Pros and Cons of Leasing a Car

Pros:

Lower Monthly Payments: You will have smaller down payments when you lease a car in Peoria.
Worry-Free Maintenance: Many vehicles will have a three-year lease. During this period, most repairs are covered by your existing lease.
No Worries About Resale: When you’re leasing, you can just return your vehicle. If you exceed the agreed-upon mileage or you have some wear and tear, there are fees to pay.
Get a New Car Every Few Years: With a lease, you can return your car every few years and get the latest models and auto tech.

Cons:

Mileage Requirements: Exceeding the agreed-upon mileage means paying some fees.
Constant Monthly Payments: You need to maintain your monthly payments consistently throughout the loan period.

Pros and Cons of Buying a Car

Pros:

Ownership: You can buy the vehicle once you finish your monthly payments. As a result, you will own the car outright and can do whatever you want with it.
Customize Your Vehicles: Leases have restrictions on what you can do with your GMC vehicle in Peoria. Owing your car means not having such rules.
No Restrictions: Don’t worry about mileage rules, wear and tear, etc. Repairs and other services are entirely at your discretion.

Cons:

Higher Monthly Payments: When you lease your vehicle, you will have lower monthly payments when compared to buying it outright.
Rapid Depreciation: A new vehicle can lose between 15% and 50% of its value in the first five years.
Larger Down Payment: When you want to get approved for a loan, you will make a larger down payment. Leasing means less chance of having to make that large down payment.

Buy or Lease Your Next GMC with Liberty GMC, Inc.

So, should I buy or lease a car? That depends on your budget and needs. If you want to know how your credit score fares, use our online tool. Find your next vehicle around Peoria with Liberty GMC, Inc..