Should I Lease or Buy My Next Buick?

Before you make a stop at your local Buick dealer, it’s helpful to have a plan of attack. Do you already know which vehicles you want?

Do you know what your budget is going to be? Are you just looking or ready to make a move? One of the biggest questions every driver has to make when it comes time to upgrade their ride is if they plan on buying or leasing. Chances are, your Buick dealer offers both options.

That Buick dealer may also have an opinion on the subject, but it’s always better to have your own thoughts prepared before stepping on the lot. Here are some things to consider when deciding if leasing or buying is right for you:

The Overall Cost

Unless you’ve saved some serious cash, you’re probably planning on financing your next Buick. In most cases, you’ll have to put some money down before the dealer hands you the keys. You may need a substantial amount of cash for that new purchase, especially if your credit score isn’t looking its best.

Leasing doesn’t come without upfront costs. Leases also have down payments and often include paying the first month upfront. These upfront costs go up if you’re goal is to have a lower monthly payment.

One thing to consider is that great lease terms could mean little to no down payment. At the same time, any upfront costs you put down on a lease are money that goes towards a vehicle you will never own.

Tune-Ups and Repairs

Another overall cost to consider deals with the wear and tear of your vehicle. If you have a standard three-year lease on a brand-new car, it will most likely be under warranty while you’re driving it. You won’t be absolved for paying for regular repairs like worn tires, scratched bumpers, and stained seats.

Buying a car means you may have to deal with the more costly repairs that come with maintaining an older vehicle. Of course, once the vehicle is paid off, you’re no longer making monthly payments. That could be money set aside to help keep the car running.

Don’t Forget The Fees

Regardless of whether you plan to lease or buy, there will be additional fees involved outside of the down payment and monthly costs. For example, a new car may require higher insurance prices or even gap insurance to make sure you’re completely covered.  Leases often come with things like acquisition fees, security deposits, and early termination fees. Make sure you understand the terms of your lease to know all of the fees you may end up paying.

Monthly Fees

For many drivers, the monthly payment is where the rubber meets the road. For those looking for the lowest monthly payment, leasing is often the way to go. Lease payments take the vehicle’s depreciation into consideration instead of just the purchase price.

When you own a vehicle, monthly fees eventually come to an end, like when the five-year loan is paid off. Lease payments potentially never end until you stop driving or eventually make a purchase.

Another area to consider is car insurance. Check with your insurance provider to know what they require and expect in terms of your new car’s insurance.

Customized For You

If the overall and monthly costs don’t help you know which is better for you right now, it’s also worth looking at how flexible each offer is. Leases are a great way to drive the newest model every couple of years. On the flip side, ending a lease early can have huge penalties and fees. You may also have a mileage allowance or have to work around other policies.

When you own a car, you have more flexibility in how you deal with it. You can put as many miles on it as you want. You can also get rid of the vehicle any time you want. Knowing how often you plan on updating your vehicle is a big help.

How To Decide

The answer to if leasing or buying is better can change depending on where you are in life. Your financial situation, family life, and expected vehicle use are not static items. The best choice for you may not be the best choice for someone else, and it certainly may not the best choice for you later in your life.

Do your research on what your overall costs will be with each option and evaluate how your car will be used. Walk into your local Buick dealer with confidence and find your next great deal.