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Buying vs. Leasing a Car

buying vs leasing a car boise idahoIf you are in the market for a new car in Boise, you may have found yourself wondering if you should buy or lease. There are benefits and drawbacks to both. It is important to understand the differences, and to ask yourself questions about how you will be using your car. Will it be a family car? A commuter car? These are important considerations when making your decision.

The most obvious difference between buying and leasing is ownership. When you buy, you are purchasing the car to own. Once you have paid it off, it is yours. When you lease, you are making a monthly payment for a predetermined term, after which you will be returning the car.

If you are leasing a car, it is important that you fully understand the terms of the lease, to avoid paying more money than you were planning.

Why buy a car?

There was a time not so long ago when people routinely financed an automobile, paid it off, drove it for several more years and then maybe sold it for a down payment on a new car, or handed it down to a child. 

While this certainly may still happen, it is not the norm. Consumers regularly purchase cars for very little money down, opting for longer finance periods of four, five or even seven years. It is common for people to trade these cars in after just a few years, frequently before they are even paid off. This begins another cycle of financing. 

Thinking of it that way, it may seem to make more sense to lease a vehicle. Although you still make monthly payments, you are not committed to the vehicle beyond the terms of the lease. When your term is up, you simply return the car and pick out a new one. If you are going to end up purchasing a new car after two or three years, perhaps leasing is a better option.

Should I lease a car?

Leasing may make sense for some people. To know if it is right for you, let's look at a couple of the major drawbacks to leasing:

1.) You are limited as to how many miles you can put on the car. If you do a lot of driving, this may not be a good option for you. A standard mileage limit is 12,000 miles. You can negotiate higher mileage, but it may cost you. If you go over the agreed upon miles, you will incur extra fees.

2.) You typically put a lot of wear and tear on your vehicles. There are a number of reasons this may be the case. You have kids, you have pets, you drive a lot for work; any of these may be a factor. The dealer wants the car back in good condition, and if it isn't, you will be financially responsible.

With that said, leasing often means a lower monthly payment. If you are likely to keep the miles low and the car in pristine shape, leasing may be an economical solution for you. You won't be tied to the car, you can upgrade to something new and different after two or three years, and if you really love the car, you often have the option to purchase it.

Whether you want to buy or lease a car, our Boise Ford dealership is your source for a wide selection of new and pre-owned vehicles. You will find excellent customer service and professionals that will help you get into the right car or truck for you.