Leasing Versus Buying a Car

Buying a new car is a huge financial decision. It means you will probably have a car bill for the next several years. Some people are not ready to make that commitment, but they still want to drive a new vehicle. They have the option of leasing a new car instead of buying one. Las Vegas Banking Rates explains the differences between these two options.

Buying – You are paying for the whole cost of the vehicle. As long as you make your payments, you own that car until you decide to sell it. You make a down payment on the car,then pay off your loan with an interest rate determined by the loaning company. Down payments may be large amounts, and may be a partial deterrent when choosing between buying and leasing. For the big road traveler, buying your car is probably the better option. Also, if you plan to drive the vehicle for more than three to four years, buying is the more economically sound choice.

Leasing - With leasing, you pay for a portion of the vehicle’s cost, the part you depreciate while driving it. The main advantages of leasing are low or no down payments, lower monthly payments, and lower sales taxes. All of this means you can get a car without getting a huge blow to your monthly expenses. One other advantage is that you get to drive a different new vehicle after your lease period ends. However, over time leasing becomes the more expensive option. At the end of your lease, you have no kind of refund. With a car you sell, you get a the depreciated value of the car.

Once you make your car decision, let Las Vegas Banking Rates help you find the best auto loan rates in the area.