Buying vs leasing a new Lincoln
For most of us, a vehicle represents the second most expensive thing we'll buy in our lives after a home. And there's usually more to it nowadays than handing over a wad of cash and driving away, especially as vehicles, like most things in life, get more and more expensive all the time. If you have the cash you can buy your new vehicle outright, that's fine, but more and more of us are now leasing. So, here we're going consider leasing vs buying, the benefits of leasing, the benefits of buying, and what you need to look out for.
Difference between leasing vs buying
In the most straightforward definitions, buying a vehicle usually means owning it outright while leasing is to all intents and purposes is a long-term rental agreement. But buying can mean purchasing outright with a lump sum, but it can also mean using finance where you end up being the owner of the vehicle once all payments have been completed. Some leases offer the opportunity to buy the vehicle at the end of the term, but we're not going to explore that here.
Benefits of buying
Buying a vehicle outright means you are the owner, so there are no monthly payments to make and no restrictions on how many miles you can drive per year. The vehicle therefore remains your property for as long as you want to keep it, and you're free to sell it anytime you want without having to ask permission or make additional payments.
Benefits of leasing
Among the benefits of leasing there’s no need to fund a large sum of money up front, and overall, leasing is generally less expensive than buying if you only keep your vehicle for a reasonably short period of time. That's just the start though, and that's because the monthly payments are fixed to allow you to budget effectively, and if the lease agreement isn’t longer than the manufacturer warranty, big repair bills are not a consideration as you’re always covered. A big deposit isn’t necessary either, as initial payments are usually the equivalent of three or six monthly payments in advance, and in some cases you won’t even need a deposit. How much your vehicle might be worth down the line is also a thing of the past as the vehicle is returned to the finance company at the end of the agreement.
Downsides of buying
Buying means having to find a lot of money all at once and what your vehicle is worth drops dramatically as soon as you drive away in it. Once the time to change your vehicle comes around again, you'll have to find another large amount of money if you’re going to buy outright again.
Downsides of leasing
A leased vehicle belongs to the leasing company, and there are inevitably some people are not comfortable with that situation. Leasing isn’t as flexible as buying outright as you will be restricted to the amount of miles you said you would do when you took out the agreement or you will have a penalty to pay at the end, the vehicle is only with you for the length of the agreement, and you have to keep it in a condition considered acceptable by the finance company as set out in the terms and conditions. Hand the vehicle back with too many miles on the odometer or in sub-standard condition, and you will have additional charges to pay.
Leasing isn’t necessarily right for everyone, but for anyone keeping a vehicle for just a few years leasing is a very affordable way of running a new vehicle. If all you want is a fabulous new vehicle for a few years until you swap it inexpensively for another, leasing really is hard to fault. To find out more about buying and leasing, don’t hesitate to get in touch with us here at South Bay Lincoln for more details on the best way for you to get into a sensational brand new Lincoln.