We have a couple options of why you might want to buy your car out right rather than leasing a car.
Though we would like to tell you, the owner and car is not always cheap there are expenses that you may have to work into your budget to maintain the vehicle such as the oil changes tires and monthly maintenance plus insurance isn’t always the cheapest as it’s going up in the past few months.
But we will talk about some of the reasons why it might be best to sidestep the leasing option and get auto financing just purchased your vehicle.
Despite the costs of owning a car, it could be a pretty sweet deal. You’re building equity and making payments on your vehicle. After about 84 months, the car becomes yours free and clear. If you want to take out a side hustle like Uber or Lyft only in car while your financing might be an option, but most likely when you’re leasing a car, you cannot take on that option by the way ridesharing is a solid side hustle.
If you on the car, you could either trade it in to upgrade to a newer car. And if you want to do something funky to your car, such as paint it or upgrade it or put in a new stereo you could do so if you are financing the vehicle a lease you cannot. With a lease if the vehicle is not returned after your lease date, you could be having to deal with extra fines or if you return the vehicle and it’s not in pristine condition, you could also be in for costly fines.
How much are you going to drive the car?
When you own a car you can drive as much as you want. When you lease a car you usually only get about 10 to 15,000 miles per year for the length of your lease and it can become costly if you go over the mileage once you have your lease up because either you may have to buy out your lease or pay the extra mileage fees. If you don’t want to be restricted on how many miles you could do in a year it is best to buy outright your vehicle. Buying a car may be the best idea because you never know what the future holds with your commute and how often you are going to have to use the vehicle you don’t want to add on any extra miles if you don’t have to.
How long are you going to keep the car?
If you end up deciding to keep your car for a very long time, the best option and the most shows an option is to buy your car out, right because I was upfront costs are going to pay off in the end. You just have to keep the car very well-maintained and make sure that you are keeping an eye on the roads that you drive.
With a car that you’ve had for years, the insurance premium may be more reasonable overtime the older, the car, the better. After a while, most people love, not having a car payment especially right now with car payments being the norm of almost $1000 a month.
Saving money on a car
If you are convinced to buy a car, here are some ideas that may playoff in your favor.
- Looking at used cars may be able to save you money and if you’re not a huge car buff and don’t need a ton of upgrades looking at used cars is a valid option.
- You can shop around for auto loans and go with the car dealership that’s going to offer you the best financing. A banking institution, such as a credit union or a bank that you already do business with is probably going to give you the best auto loan rate you will see.
- Take the shortest auto loan that you can afford. Longer car payments means smaller amounts of money per month but you could be paying more overtime than the car is worth.
- It is best to make a substantial down payment, so it knocks down your monthly payment. We know that a lot of folks are looking for low down payment auto loans or even $99 down car payments near them.
- Keep the car and drive the car as long as possible and make sure that it has the bells and whistles that you want in a car.
Like most people, it is likely that you have to have a car to get to work or just run errands or just do every day tasks. If you’re torn between financing a vehicle or leasing a vehicle remember it all depends on your specific needs. It’s just making the right decision for you in the end.