Does the New Year mean a new car is in your future?
Many people are shopping, and the big decision is whether to buy or lease. What are the pros and cons?
Walking into a car dealership can be a bit intimidating, so how do you know whether to buy or lease?
Here are some things to consider: With leasing, you'll need to watch your mileage, you'll be charged for each mile over the limit on your contract.
You'll also be responsible for damage to the vehicle when you turn it in at the end of your lease.
However, you do have the option to buy that same car at the end of your lease, for less than the dealer could buy it for.
Here's a benefit: your car remains under warranty for the entire length of your lease, costing you less on repairs in the long run.
Another perk of leasing a car is that you tend to get more luxury for less money.
Jason Porecco from Bianchi Honda says seventy percent of people are leasing now.
If leasing just isn't for you, there are some reasons to buy. Porrecco says, if you stay on your five-year payment plan, your vehicle will be paid off at that time, and you'll be free of a car payment. He also says vehicles these days will last ten to fifteen years, so you'll save money there, too.
The best advice is to know your budget, know what features you're looking for and do your homework before you head to the dealership.