As Lexus dealers near Daytona Beach, FL, we help people decide if they should buy or lease their next automobile on a daily basis. It’s gratifying when we help our clients make the decision that’s right for them and we’ll be happy to assist you with making your choice.
There are benefits and drawbacks to both buying and leasing. The biggest benefit of buying a car is that you own your vehicle once you’ve paid off your car loan. The biggest advantage of leasing a vehicle is that your monthly payments are typically lower than what you’d have to pay for a car loan. That’s because you’re only paying off the difference between what the price of a car currently is and what the value of the car is expected to be at the end of your lease.
For instance, if the price of the car you’re going to lease is $40,000 and the vehicle’s value is expected to be $25,000 at the end of your lease, you will pay off the $15,000 difference plus interest during the term of your lease. If you purchase a vehicle at the same price, you will pay $40,000 plus interest before you own your automobile outright.
One of the biggest drawbacks to leasing a vehicle is that you don’t own your automobile at the end of your lease. In essence, you’re simply renting an automobile during your lease, meaning you’ll have no equity in your car at the end of your lease. Another disadvantage is that a lease generally has mileage restrictions in it. If you exceed these thresholds, you will have to pay a penalty at the end of your lease.
One disadvantage of buying a vehicle is that you’ll generally have to put down a larger down payment than you would if you chose to lease instead. You’re also taking a chance when it comes to your vehicle’s resale value. When you lease, the future value of your automobile is built into your contract whereas the value of a vehicle you own is determined by what the market will bear at the time you pay off your loan or try to sell or trade in your car.
If you’re unsure about whether you should buy or lease your next Lexus vehicle, visit Lexus of Orange Park today. Our finance experts will help you make the decision that’s right for you.