Millbank, SD drivers looking for a new set of wheels have many different options to consider. Which trim level do you want? Which color looks the best? What’s more important, fuel efficiency and safety? One of the most important questions we always get here at Gesswein Motors is whether drivers should lease or buy a new vehicle. Here’s the difference between leasing and buying so you can make an informed decision.
Benefits of Leasing a Car
Leasing a vehicle is almost the same as renting it. You will still need to make routine payments, but these payments aren’t part of a loan, so you aren’t borrowing any money. You are paying for month-to-month usage of the vehicle, so you can drive the car for as long as your lease is still active. Some perks of leasing a vehicle include:
- Lower monthly payments – Your monthly lease payments will be lower than auto loan payments since there is no interest attached to the deal.
- New car upgrades – Leasing a vehicle allows you to upgrade to a new car every few years, so you never have to see your car get worn down or clock up miles. Once your leasing term is up, you can always trade in your vehicle for a newer model with no strings attached.
Benefits of Buying a Car
The obvious benefit to buying a vehicle is owning it for the long term. Once you pay off your loan, the car is entirely yours. You won’t have any surprise or hidden fees once you walk away with your purchased vehicle, and in the long run, you’ll save money. Paying off your car loan early means you will save on interest fees.
If you have any additional questions, head to our finance center in Millbank, SD to talk to one of our specialists about your leasing or buying options.