Should You Buy or Lease Your Next Car?

When you're considering a new vehicle purchase, you'll have a variety of questions to answer as you go through the process. Once you've decided on which model you want and which trim level suits you, it's time to think about how you're going to pay for your new car or SUV. At this point you'll have the option to either buy or lease your next vehicle, but which option is best? And more importantly, is buying or leasing a better choice for your individual situation? P.J's Mazda in South Burlington is here to help Vermont drivers decide whether buying or leasing is the best option for your next vehicle, so you can make the best choice for your lifestyle.

Benefits of Traditional Financing

When you think about bringing home your next car, traditional financing is likely the first option you think of. And since there are several benefits to traditional financing, it is often the choice that Vermont drivers will opt for. Specifically, traditional financing offers more flexibility than a lease. That is because financing a loan allows you to choose the term length so you can balance how long you'll pay vs. how much you'll pay per month. If you're comfortable with a higher monthly payment, you can shorten your term and pay off your vehicle more quickly. This is especially ideal if you drive lots of miles per month, so you're not making a car payment while you're past the warranty period.

Another benefit to traditional financing is that you never have to worry about wear and tear on your vehicle. If you have pets or children, holes in the upholstery and stains are almost inevitable. With a lease, you would have to worry about paying for those damages when your term ends, but with traditional financing you're free to let life happen and take full advantage of your new Mazda vehicle. Furthermore, you'll have no concerns about mileage limits so you can take on an extended road trip without worry.

Perhaps the most compelling reason to opt for traditional financing is equity. As you pay off your car loan you'll have an asset that is worth more than the loan you have remaining. This gives you the leverage to use your current vehicle as a trade in to take money off of your next new car or SUV. Even better, you can pay the vehicle off completely and live free of monthly car payments until you decide it's time for a new ride. This can be especially important when it comes time for a major repair. Since you own the vehicle outright, you can choose to leverage its value to get a new vehicle rather than pay for a costly repair.

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Benefits of Leasing a New Car

Just like with traditional financing, leasing offers several advantages that might be right for you in certain situations.

If you don't drive much, a lease can be an excellent choice as you'll pay a much lower monthly payment for your vehicle. While you will have a mileage limit you'll have to look out for, those with short commutes should have no trouble staying below the threshold and enjoying the full benefits of that lower monthly bill.

You'll also enjoy a shorter term on a lease vs traditional financing. This allows you to get into a new vehicle every two to three years as opposed to four to six with standard financing. Keep up with the newest models and latest technology so you'll never feel left behind.

The biggest benefit to leasing is that you'll always enjoy the confidence of a warranty while you drive the vehicle. Because your mileage cap and shorter term always keep you within the warranty, you'll never have to worry about paying out of pocket for a major, unexpected repair.

Visit Our Dealership Today!

If you still have questions about financing your next car, visit P.J.'s Mazda in Burlington today! We'll help you dissect your lifestyle to decide if a loan or lease is the best option for you!