In today’s busy world, everyone, especially students, needs a fast way to get around. Those who choose cars often do not know the various options open to them..
Both leasing and buying a car are viable options for the modern-day consumer wishing to purchase a vehicle.
Leasing a car involves paying a smaller note for a car with restricted mileage, for a certain amount of time. At the end of the lease, the car is returned to the dealership, if not purchased by the lessee.
According to sales representative at Diamond Mazda, the pros of leasing a car rather than buying a car are the lower monthly payments, not having to concern yourself with disposing of the car, and the fact that the car is only leased for the warranty period, so the consumer will not have to pay for repairs beyond the warranty.
The representative said the cons of leasing a car are the mileage restrictions and the higher insurance due to limits of liability and ownership.
Tonya Comeaux, a sales representative for Richard’s Honda, said that one positive aspect of leasing is the fact that a consumer will not have to drive the car for a lengthy time.
Comeaux said more people buy from Richard’s than lease because many people do not know much about the leasing process.
She said the majority of customers are afraid of balloon payments, which are mileage and repair penalties. These payments are made at the end of the lease.
Terri Ledet, a sales representative for Ralph Sellers Chrysler, Dodge and Jeep said the average mileage penalty per extra mile driven is usually around 12 cents.
Ledet said he believes the reason more people buy than lease are the balloon payments and the decreasing residual, which increases the monthly note.
Christopher Roberts, a representative in the finance department of Captiol GMC, said there are different types of leasing and different deals offered.
Roberts said Capitol uses the GMAC lease, and the company provides a deal for the consumer. Roberts said this type of lease gives the customer an option to return the car up to six months early, in order to enter a new lease or purchase another vehicle.
Miles Hardy, a business junior said he leased his new car because he was in a wreck.
“I also leased a car so I could get a new car after college,” Hardy said. “By the time I graduate, my lease runs up and hopefully I will be able to get an SL 500 for graduation.”
Roberts said a car depreciates whether or not an individual buys or leases the vehicle.
A sales representative from Diamond Mazda said some of the positive things about buying a car are the sense of ownership, the feeling of investment and gaining equity.
“I would rather buy a car because in the end you have something to show for all the money that you spent,” said physchology sophomore Katie Sweet.
If you get tired of your car after a few years, then leasing is right for you. If you want the security of ownership and a sense of investment, then buying is the better option.