Whether you’re in the market for your first car or looking to add to your existing collection, you’re faced with a lot of choices. Everything from the color to the number of passenger seats to the power under the hood is up to you. The make, model, or features you choose depend a great deal on your personal preferences and needs. On top of all those decisions, you’ll also have to think long and hard about whether you want to lease your new vehicle or purchase it.
Even if you think you know the answer to that question right away, you might want to think again. There are numerous pros and cons to each, and if you don’t know them all you could miss out on saving yourself some money.
For instance, leasing your new car means you’ll pay taxes only for your monthly payments. If you purchase, your taxes will be based on the entire purchase price of the vehicle. Speaking of monthly payments, they’ll be higher if you choose to buy because they will be based on the price of the car rather than depreciation during the term of a lease.
Leasing might also make more sense if you don’t want to be responsible for any scheduled maintenance or common repairs. Under the terms of your lease, these may be covered so you won’t have to pay for them out of pocket. If you’re leasing and don’t have any issues repaired, however, you may be in line for penalties at the end of your term.
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Choosing whether to buy or lease your next vehicle can have a significant impact on your financial situation when it’s all said and done. Your choice also could influence the way you use and care for your car or truck. To learn more about the differences between leasing and buying, take a look at the accompanying resource.
Infographic created by O’brien Toyota