In The Mood For A New Car? To Lease Or To Buy?

Key Takeaways

• Car Buying Vs. Leasing is a hot topic for Americans in an age of high car prices.
• Auto leasing is when you only pay a dealership for renting a car for a 24–48-month use, plus taxes.
• Buying a car puts you at the wheel of all ownership decisions – freedom to use!
• Georgia lease tax (TAVT), updated in 2018, allows for tax payments only for the period of the case lease – benefiting customers.
• Buying and leasing are designed to accommodate customers from all walks of life & income.

Leasing a new car used to be the fixer-upper for middle-class Americans looking to impress a date, boast an expensive evening, or set the tone at a corporate event with a luxury vehicle of their choice. It was a seldom frivolity that suited a purpose of a time when expensive cars were just expensive, and cheap cars were excellent & affordable.

But, with the recent consumer sentiments favoring the used car leasing & buying segment, it’s become pretty clear that cars aren’t that cheap anymore – with an average cap at almost $47,000 for a new car – that’s 13% more than grandad had to pay for his Plymouth. Now, you can buy, lease, or rent any vehicle as you see fit – but with a heftier price tag!

In The Mood for a Set Of Wheels?

Now, suppose you’re in the mood to get a new car, and you’ve gone through the motions of picking out the ride you need, whether to get a splendid certified pre-owned or stick to the new one. And you’ve read every test drive guide you can find – (sample ours too!) – there comes the time of money matters. That’s when you sit down and go over the options that best suit your bank & balance. For that purpose, a degree of awareness of how a lease and a purchase work – works wonders.

Here we have a breakdown of the main differences between leasing and buying a car in the United States:

Lease A Car – Throw Your Auto Ownership Worries to The Wind

An auto lease means you are renting a car. Still, instead of a fixed monthly rate with high interest, you are paying the dealership back in terms of the depreciated value, plus rent & taxes, of the vehicle. Don’t be fooled – cars depreciate pretty fast as soon as they go off the lot, but this amount is still pocket-friendly compared to the rates you get to deal with during a new buy.

To summarize the benefits:

• A lease usually requires a lower down payment than buying.
• The dealership covers most repairs in a bumper-to-bumper warranty on every lease return, so you get a well-tuned car.
• No need to fuss over the potential of car resale or trade-in because the dealership does that job for you
• It offers you the lessor the flexibility of changing your cars sooner.
• As per the TAVT for Georgia residents, you only have to pay taxes for the duration of the car lease & amount. That is excellent news for anyone with a penchant for new cars every season!

But then there are a few pitfalls that can slip by if one is not too contract-terms savvy:

• There are limits on how high mileage you can go in a lease contract.
• You miss a payment, get shunted off to a ‘grace period,’ and the concerned dealership may be entitled to repossess your vehicle.
• You can damage your credit score if you default on auto lease payments, effectively complicating the next time you want to get a car – unless the dealership offers bad-credit financing.
• If you decide to buy the car you had leased for so long, you practically have no equity in the vehicle and must come up with the lump sum of depreciated value remaining of the car.

Buy A Car – The Envy of the Neighborhood

This one is pretty straightforward. You get to own your car in an auto purchase fully. You have the added benefit of OEM parts & accessories, plus dealer add-ons. That info alone is enough to boost up to 30% in consumer self-confidence, as the Martec Group puts it.

You can pay by cheque, debit, credit, installments, or take out a bank or dealership loan. It’s clear-cut and efficient, and you only have to deal with a few state-bound formalities & documentation fees to claim your vehicle.

• Owning your car facilitates your daily activities without disruption or limiting commitment.
• You can modify, customize or alter your vehicle as you see fit, even the bumper stickers!
• You are legible for dedicated dealership specials & lifetime warranties on transmissions & powertrains.
• You have autonomy over your driving habits & can push out your mileage to suit your roadworthy needs.
• Provided you pay due diligence to the auto maintenance schedules & document vehicle history, you can trade your car for a certified pre-owned program at a profit.

Of course, we can’t let you go without leafing through the pitfalls of owning your car in these trying times:

• Over time, maintenance costs can become a hassle – especially with high mileage drivers.
• As a car owner, you get to feel the impact of depreciation on a vehicle evaluation if you plan to sell your vehicle.
• Rising energy & fuel costs will certainly take a bite out of what you can expend on a heavy vehicle like a sports trim or an SUV.
• Resale or trade-in can become detrimental if your car has not exactly been in the best shape.
• Suppose you default on a car loan payment. In that case, you get slapped with a gentle default, severe credit degradation & potential car repossession. You can face legal action too.

So, What Do You Go With?

Regardless of a car lease or a buy, there are always details in fine print that can’t be missed. Most of this nitty-gritty is the hidden fees & excess documentation costs that are specific to respective US states. In Georgia, one has to pay the following regardless of a purchase or a lease:

• The initial down payment & first payment
• A flat $20 registration & a separate acquisition fee
• Documentation & title fees averaging $545-$699 & $18-$20 each.
• The disposition fees, the tax & some mail & paperwork fees.

The significant difference is the amounts one has to pay for the installments for a new car or lease, plus the variance in how taxes are calculated. So, it’s not that complicated to have your car or lease one – as per your disposable income & priorities. Both ways are designed to provide convenience to potential customers & that is how Matt Patton Ford Lincoln, serving West Point, GA, does it!

Come to our dealership and feast your eyes on our wide range of Ford available for purchase & leasing, plus our esteemed certified pre-owned section. If you have your heart set on a particular car and need a fixer-upper, drop by our finance staff, and we will accommodate you to the best of our customer excellence offerings!

Get in touch with us, browse our cars online, and don’t hesitate to let us update you with the latest deals!

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