Buying Vs. Leasing: Which One Is Right For You

Smiling woman in the showroom enjoying luxury car

Purchasing a vehicle can be expensive. The prices can be too much for many customers and even long-term auto loans can be tough to afford. Fortunately, leasing a car is a viable option. This allows consumers to get behind the wheel of a new vehicle with a monthly payment that is typically lower than if it was purchased. Taking the leasing route allows you to replace your car every couple of years, while also maintaining low payments. There is no right or wrong answer when it comes to the question: Is it better to buy or lease? Both have their pros and cons. Read on to learn more!

Pros and Cons of Leasing

  • Pros
    • Lower monthly payments
    • Lower sales tax
    • Enjoying the latest technology
    • You will always have warranty coverage
    • Trading in a leased vehicle is an easy process
  • Cons
    • Subject to strict mileage limits
    • Must keep the vehicle in “showroom-like” condition throughout the lease
    • There’s no equity at the end of the lease to use towards a down payment on your next vehicle purchase
    • You can’t get the vehicle fixed just anywhere

Pros and Cons of Buying

  • Pros
    • Once the loan is paid off, your payments end
    • Equity from the car can be used towards the purchase of a new one
    • You can build your credit by making on-time, monthly payments
    • You can drive as much as you want without mileage constraints
    • You can sell the car on your own schedule
  • Cons
    • Sales tax is higher when you purchase a car
    • You have to pay interest on the entire cost of the car
    • The warranty will end
    • The car’s future value is unknown

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Barker Buick GMC

Whether you choose to pay cash or finance your new vehicle, you can get an incredible deal on a new Buick or GMC vehicle in Houma, LA when you shop with us at Barker Buick GMC. Our sales team will help you find the right SUV or truck to fit your needs!

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