Buying a car is one of the biggest purchases that you can make – it’s wise to look at all of your options.
If you’re in the market for a new car, there are a lot of options to consider. From the make to the model to the color, to the safety features – you then have to decide if you should buy or lease. This is quite a significant financial decision to make, so it’s important to look at all of your options as well as considering your financial future.
Here’s what to consider when buying or leasing!
Your monthly cash flow. Leasing a car often has a lower monthly payment compared to financing a car with the same loan terms, since with a lease you’re paying for the depreciation of the car during the years you have it. If you have a tight budget, leasing may be more favorable.
Available savings for a down payment and initial fees. Most lease agreements have low down payments or you can get the dealer to waive the down payment, and you’ll pay less for the sales tax on a lease as well.
How much you drive. If you drive a lot (for example over 10,000 miles) you may have trouble finding a suitable lease agreement. However, you may be able to pay extra for each mile, but this will significantly hike up the price. In addition, if you go over your lease mileage agreement, you may get a penalty fee. If you have high annual mileage, opting to buy a car would be your best bet.
If you drive a car for business. When you lease, a portion of the car’s depreciation and financing costs can be deducted on your taxes. Interest on loans to buy a car, however, aren’t deductible.
The longevity of the car. Buying a car is a better deal, financially. While you do face higher monthly payments, you’ll get to keep the car, even after x amount of years – unlike leasing.
Whether you lease or buy, maintaining quality auto insurance means that your financial investment is protected and kept on the roads longer! To secure your auto insurance in Oakley, California, contact Agers Insurance Services today!