It's an age old question when considering a new vehicle: to lease or to buy? There are advantages and disadvantages to both.
Leasing a car isn't for everyone, but it can afford you certain advantages. If you buy a car, it loses value the second you drive it off the lot.
â??The big benefit is rather than investing all of your money into a vehicle that is going to depreciate over time, you pay for the part of the vehicle that you're going to take advantage of, driving it for those three years, and then you can easily have options at the end of that lease agreement,â?? says Josh Edwards.
Leasing a car could actually afford you a lot of tax breaks. For example, if you buy a new car, you're going to be paying the six percent Michigan sales tax no matter what. But if you lease a car for maybe $400 per month, you might only be paying about $20 per month in taxes, so that could save you a lot over the long run. And many times when you lease a car, your maintenance will be taken care of by the dealership.
However, buying a car is still a viable option. As technology improves, vehicles improve as well. Cars are getting better performance, for longer periods of time.
â??Buying the vehicle is always a great option, too, because the vehicles are getting so much better in how they're built,â?? Edwards says. â??So the value of vehicles is getting more advantageous to customers.â??
Edwards Automotive sells about 60 percent of their new vehicles and leases the other 40 percent.
When deciding on what's best for you, consider your price range, the amount of miles you're going to be driving, and what the vehicle will be used for.