Part of the thrill of buying a new car is thinking about your options. Do you want something sporty or more practical? Will you go for a hybrid or a traditional gas engine? How much power do you want under the hood? What color do you want?
Before you start thinking about any of those questions, there’s another that could have a much bigger impact on how much you get out of your new vehicle: Will you lease or purchase?
Although some might try to steer you in one direction or the other, there’s no definitive answer to the question. It all comes down to what works best for your situation and preferences. Therefore, it’s important to sit down and examine the pros and cons that come with each payment structure.
For example, you need to consider how this decision could affect your monthly payments. If you lease, you’ll pay less per month because you’re only responsible for the depreciation during the term. Buying, on the other hand, means you’ll pay a portion of the entire purchase price, which means you’ll likely pay more in the long run.
Another thing to keep in mind is repairs and maintenance. Who will be responsible for paying? Under a lease, you may not need to pay for any repairs. Of course, purchasing the vehicle outright means you’re wholly responsible for any upkeep.
Buying a car is a big decision that’s ultimately made up of many smaller ones. For more information to help you get the process off on the right foot, take a look at the accompanying resource.
Infographic created by O’brien Toyota