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Leasing vs Buying a Used Car

If you’ve just discovered a used car model that you love, you’ll want to get behind the wheel and drive it home with you as soon as you can. Before you can do that, though, you’ll need to decide on a payment plan for the car. You have two main options: leasing or buying the used car. Our team at Fred Beans Used has put together this helpful guide to the pros and cons of each option to help you navigate this decision. We hope it’s helpful!

Leasing Your Used Car

Leasing vs BuyingLeasing a car means that you’re essentially borrowing it from the dealership. You’ll pay a monthly fee for a pre-determined amount of time, and when your lease is up, you can just drop the car back off at the dealer.

Pros of Leasing

  • Monthly payments will be lower than the payments you’d make if you chose to buy. With leasing, you’re only paying for the depreciation that occurs while you own the car rather than paying for its full worth.
  • Since lease terms are generally less than three years, the car will be covered by any relevant warranties for the entire time you have it, so you may not have to pay as much for unexpected repairs.
  • When you’re finished with the car, you can just drop it off and start driving something new, so you’ll get to try a lot more vehicles, and you’ll never get bored with driving the same car for years on end.

Cons of Leasing

  • Many lease contracts will limit the number of miles you’re allowed to drive the vehicle. If you make a lot of road trips, you’ll want to consider whether you need to drive for more than the set amount.
  • The car must be returned in the same condition as when you first got it, so you can’t make any changes that can’t be easily removed.
  • When you’re lease is up, you no longer own the car, and you’ll have to begin your search process for an updated vehicle all over again.

Buying Your Used Car

Leasing vs BuyingWhen you buy your used car, you own it for life. You’ll likely take out a car loan to finance your purchase, paying off the total price in monthly increments.

Pros of Buying

  • Once you’ve paid off your full loan amount, you won’t have any car payments left to worry about beyond the necessities, like fuel and maintenance.
  • There’s no mileage restrictions when you own the car yourself, so you can drive it as far as you like, taking trips far away from Philadelphia, Doylestown, Flemington, and Mechanicsburg.
  • You can customize the vehicle however you like, adding accessories and changing up paint as you please.

Cons of Buying

  • You’ll be paying for the full value of the vehicle, so your monthly payments will likely be higher than they would for a lease.
  • It’s also likely that you’ll need to make a larger down-payment up front, so you’ll need a little more cash on hand.

Make Your Choice: Leasing vs Buying

Now that you have all the information about your financing options, you’re ready to purchase your used car! Contact Fred Beans Used today to discuss your financing options. Soon, you’ll be hitting the streets of Philadelphia, Doylestown, Flemington, and Mechanicsburg in your pre-owned ride.

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