Buy or Lease

When it comes time to get a new car you are always going to have to options in front of you. Should you buy or lease? You can talk to ten different people are you are likely to get five that will tell you that buying is better and you will get five that will swear to you that leasing is the way to go. Which way is the best? With any financial situation the best way is whatever way works best with your current situations.

Why You Should Buy

There is a simple reason why you should buy a car: When you buy it, the car is yours. You are not renting the car, you will actually own it. Your payment schedule is going to be similar to your payment schedule when you lease a car and your monthly payments are probably going to be a tad higher. Once your loan is up, however, the car is yours and you have some value to show for the months of payments you made. When you have paid off your car you are basically driving around in a car for free! You can also resell it when you are buying another car, and the amount your current car is worth will take a sizeable chunk out of the cost of your newest car.

Why You Should Lease

Lower monthly payments! When you lease you are likely to pay a lower monthly payment. You are basically renting your car, so there is no long term commitment to paying off a giant auto loan. Leasing works best for people that do not mind switching cars every few years. If you like to keep your options open then leasing may be just what you need.

What to Choose?

People will often side with auto loans for the following reasons:

• Buying means you will have resale value on your car.
• Lease terms often restrict how many miles you can put on your car.
• Often times there will be lease penalties you have to pay when you turn your car in.
• When you purchase a car it can be yours forever, when you lease a car you know you have to give it back eventually.
• Owning a car can have a better “feeling” than renting or leasing a car.

The ultimate choice is up to you, but Johnson Bros Auto recommends buying a car. Allow us to match you with a lender! If you have any questions, check out our bad credit auto loan FAQ page.