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Should I Buy or Lease A New Car In Binbrook?

Should I Buy or Lease A New Car In Binbrook?

Buying and leasing are the two main options when looking at new cars. Whether you use a Binbrook auto loan or pay cash, buying a car has definite advantage. But so does leasing. So, is it better to buy or lease a new car?


As always with these types of questions, it depends entirely on your circumstance and what works for your personal situation.


Our Binbrook auto loan team came up with some pros and cons for buying and leasing.


Pros of buying your car


There are a couple of distinct advantages to buying your next car.


It’s yours – It stands to reason that when you buy a car, it’s all yours. Some Binbrook car loans will be secured on the car but not all will. Either way, it’s yours and nobody can take it away as long as you pay.


You can customize it – If personalizing your car is your thing, you can only do that when you own the car. You cannot customize or make any material chances to a lease car without paying significant penalties


You can trade it in – Owning a car means you can sell it or trade it in when you’re done.


Cons of buying your car


It isn’t all good news for buying a car though.


Cost – Binbrook car loans will be more per month than a lease. The advantage is that you’re paying for an asset you’ll get at the end but you still have to find that money somewhere.


Down payments – While many leases require an upfront payment, you definitely need one with a car loan. If you’re not in a position to save, this can be problematic.


You pay for servicing and running costs – While new cars come with warranties and free servicing, there will come a point when you have to pay for it. Depending on the car, that can add significantly to the cost of running the car.


Pros of leasing a car


There are definite benefits to car leasing too.


New car every couple of years – If you like driving the latest models, leasing is an accessible way to do that. Most leases are for 24 or 36 months, meaning you get a new car to enjoy when the lease is up.


Lower monthly payments – As you’re not paying off a principal (the asset part of a loan), leasing is usually cheaper than an auto loan. That can mean lower monthly payments or a higher specification car.


Servicing included – Some leases include all servicing costs throughout the term. This can lower the running cost of the car once the manufacturer servicing offer has expired.


Cons of leasing a car


Car leasing also has downsides.


You don’t own the car – You’re paying a significant amount per month but own nothing. You’re renting the car and will end up with nothing at the end.


Limited mileage – Most leases have mileage limits that incur a penalty per mile once you exceed it. If you drive a lot, this can work out quite expensive!


End of lease fees – Some leasing companies have better reputations than others when it comes to returning the lease car. Some will charge you for every little thing and try to get away with high fees. Not all do though.


So, which is best? If you like driving the newest cars and will change it often, a lease might make more sense. If you tend to settle on a car and keep it for a long time, buying is best.


If you do elect to buy or lease a new car, our Binbrook auto loan team are on hand.


We will use all our skill and experience to deliver the lowest possible car loan rates in Binbrook, guaranteed. Contact Car Nation Canada Direct to learn how we can help.


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Categories: Auto Loan

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