Leasing vs Buying A New Car in 2020: 5 Ways to Know What’s Right for You
Deciding to purchase a new vehicle is a big decision! Deciding on the best avenue can seem like a difficult task. Which is more advantageous, leasing or buying a new car in 2020?
Read on to determine which is the right avenue for you.
Leasing vs Buying A Car: Pros and Cons
Young Drivers
It allows you to have lower monthly payments while you’re paying back student loans or other monthly bills. And, you can negotiate your car lease with us at our Harrisonburg dealership just like you would negotiate the purchase of a new car.
Early Adopters
Road Warrior
That’s because leasing companies charge a hefty fee if you go over their limit. For you, buy instead of lease!
Long Term Commitment
You also understand that wear and tear on your vehicle could reduce its resale or trade-in value. That’s okay because you’re in it for the long haul.
Penny Saver
Why? With leasing, you’re only paying for the depreciation on the car during the lease term, plus taxes, fees, and interest. That doesn’t mean you get less car, by any means. However, you will always have a car payment.
Additionally, you should know that having an accident or any damage to your vehicle is more stressful than when you buy a vehicle. There are hefty fees involved with a leased vehicle should damage occur to the vehicle.
On one hand, leasing would not benefit you at tax time because vehicle depreciation is a deductible expense. Accelerated depreciation may also be a possibility.
Mileage is another issue. While mileage can be deducted for both leased and purchased vehicles, the mileage limitation is a negative. No business needs the stiff penalty of going over the limit.
On the other hand, if you, as the owner, leases the vehicle, then you have more control over the mileage. Still, you lose the tax benefit of depreciation.
Bottom line. Buying is more advantageous for you than leasing.
Making the Decision
Whether you’re considering leasing or buying, turn to the pros at Joe Bowman Auto Plaza. We’ve been helping people just like you for 60+ years.
To help you answer that important question, we’ve laid out five types of drivers. Some are perfect for leasing; others are perfect for buying.
Read on to determine which is the right avenue for you.
Leasing vs Buying A Car: Pros and Cons
Young Drivers
Starting out is tough! You need every financial advantage possible. So, if you’ve just gotten that first job, or you’re going to college or grad school, PLUS you have little or no credit history, leasing may be the perfect avenue for you!
It allows you to have lower monthly payments while you’re paying back student loans or other monthly bills. And, you can negotiate your car lease with us at our Harrisonburg dealership just like you would negotiate the purchase of a new car.
Early Adopters
If you LOVE cutting edge technology, the latest in safety features and infotainment systems, and you want a new car every two to three years, leasing would be right for you! You can also enjoy the latest in electric car technology. (Just how far will that baby go on one charge?)
Road Warrior
On the road 15,000 miles or more a year? Buying a new vehicle is the right avenue for you. As a marathon driver, the leasing mileage limits of 10,000-15,000 miles would work against you.
That’s because leasing companies charge a hefty fee if you go over their limit. For you, buy instead of lease!
Long Term Commitment
If you’re expecting to keep your car for a long time, you too, might want to buy instead of lease. You know that means that over the course of your long term relationship, you’ll have dings, knocks, and bangs.
You also understand that wear and tear on your vehicle could reduce its resale or trade-in value. That’s okay because you’re in it for the long haul.
Penny Saver
For the person who wants the cheapest monthly payment possible, leasing is the way to go. That’s because leasing payments are usually less than buying a vehicle outright.
Why? With leasing, you’re only paying for the depreciation on the car during the lease term, plus taxes, fees, and interest. That doesn’t mean you get less car, by any means. However, you will always have a car payment.
Additionally, you should know that having an accident or any damage to your vehicle is more stressful than when you buy a vehicle. There are hefty fees involved with a leased vehicle should damage occur to the vehicle.
Tax Benefits of Leasing A Car vs Buying A Car
If you’re a business owner, the landscape for leasing a car is different.
On one hand, leasing would not benefit you at tax time because vehicle depreciation is a deductible expense. Accelerated depreciation may also be a possibility.
Mileage is another issue. While mileage can be deducted for both leased and purchased vehicles, the mileage limitation is a negative. No business needs the stiff penalty of going over the limit.
On the other hand, if you, as the owner, leases the vehicle, then you have more control over the mileage. Still, you lose the tax benefit of depreciation.
Bottom line. Buying is more advantageous for you than leasing.
Making the Decision
Leasing vs buying a new car is a decision worth serious consideration. Weigh your situation carefully to make the right decision for you.
Whether you’re considering leasing or buying, turn to the pros at Joe Bowman Auto Plaza. We’ve been helping people just like you for 60+ years.
