When you need a car in South Amboy, NJ or the surrounding area, it might be tempting to look at a leasing option. After all, with a lease, you can drive off the lot with a new car and a much lower monthly payment. The downside is that when you are done paying, you don’t own anything. Buying a new car has several advantages over leasing.
Why Buy a New Car?
New cars offer reliability and better fuel efficiency. You never have to worry about a false start and a call for the tow truck in the morning. You don’t miss important meetings due to car trouble. Instead, you have something you know will get you back and forth. When looking at the different ways to acquire a new car, buying beats leasing in several ways.
Pay Less in the Long Run
When you buy a new car, you pay less for the vehicle. If you lease it first, you might later convert to a sale, but you will pay a much higher final price. After all of the monthly payments and the down payment you made for the lease, you still need to pay all over again to own the car. This turns a simple five or six-year loan into monthly payments spanning almost a decade, in some instances.
Watch for the Hidden Fees
A lease agreement may also be home to a host of hidden expenses. If you drive too many miles, there may be a fee for excess mileage. If there is any damage to the interior, above what the dealer considers normal wear and tear, you might be facing a bill. Maintenance is another issue. Some lease agreements make maintenance the responsibility of the dealers, but with others you could be signing checks to the garage.
What about Insurance?
If you lease a car, you may be surprised at your insurance premium. Leased car drivers often pay a higher rate for insurance. Dealerships may demand higher coverage than you would carry on something you own, so be sure to ask about the cost of coverage.
Does Leasing Ever Make Sense?
From a financial perspective, leasing is almost never a good idea. Unless you are a business owner who can deduct leasing costs, buying is the better option. Working with Middlesex, NJ auto collision specialists can help you find the right car at the right price. Once you are done making the payments, you have a car you can drive without paying a monthly fee.