I'm considering a new car. Should I buy or lease? | UNIVISTA INSURANCE

I’m considering a new car. Should I buy or lease?

I’m considering a new car. Should I buy or lease? If you’re on the brink of upgrading your mode of transportation, you’ve likely pondered this question: Is it better to buy a new car or go for a lease?
Let us break it down for those needing to become more familiar with the topic. Leasing, or leasing with the option to purchase, is a modern way to have a car. It’s a rental contract where you pay a monthly fee to use a new vehicle for several months or miles. You can either return the car or purchase it at the end of the agreement.
Let’s highlight a few key advantages of leasing:

  1. You’re always behind the wheel of a new vehicle, complete with the latest technology.
  2. Typically, the monthly lease payment is lower than you’d pay when buying a new car through a loan.
  3. If you’re a business owner, leasing comes with tax benefits.

Now, let’s talk about the downsides of leasing:

  1. At the end of the lease, you don’t own the car, so you either have to lease another one or buy a new car.
  2. There are additional charges if you exceed the annual mileage limit.
  3. Any damage, scratches, or dents to the vehicle will result in extra charges.
  4. If you wish to terminate the lease early, there’s usually a penalty.

If you’re a fan of driving modern cars, enjoy having a new vehicle every three or four years, and it fits your financial situation, leasing might be your go-to choice.
On the other hand, buying is likely the better option if you’re a more conservative individual who prefers owning things outright and plans to keep your car for at least a decade. The advantage of purchasing a vehicle is that once you’ve paid off the debt, the car is entirely yours, and the more you use it, the more you’re effectively reducing the overall cost.
As for insurance, a lease agreement typically requires you to have comprehensive coverage, including collision and sometimes gap insurance.
If you’re looking for affordable car insurance, don’t hesitate to contact Univista Insurance. We’ve got you covered. I’m considering a new car. Should I buy or lease?

Give us a call today for a comprehensive evaluation! (305) 985-4126. You can also get a free quote right here.