The better option; buying or leasing

Both purchasing and leasing an automobile brings with it certain advantages and. Buying the car can give more freedom but leasing can allow for a newer and possibly better car within the same budget. Most car dealers in San Antonio offer both options.

The buying option

When you buy the car, it is yours. You are free to drive it for as many miles as you want, and you are free to customize it anyway you see fit; you can add custom wheels, tires, tinted windows, and you are free to seek service from any service center you desire. Full ownership brings with it flexibility.

Next to your house, your car is usually the second most expensive thing you will probably buy, and it can have a major impact on your finances. Of course, you can get a loan to cover the cost of the vehicle and pay the loan back over a period of time. With a loan comes interest so the overall cost of acquisition is actually higher than the price of the car and with the inflated payments due to interest you have to factor in the fact that the asset depreciates over the term of the loan and when you finally own it, the value will have dropped.

The leasing option

Many car dealers in San Antonio have leasing schemes which let you have a new car without having to pay full price. This is an attraction to many, especially those who want a newer and more reliable car on a budget. When purchasing a car the down payment will normally be a trade in plus cash, which may be as much as 30% of the new cars value. With a lease, the cash out is limited to the first month’s payment, a security deposit, the taxes and registration fees. The total of these costs will be considerably less than what a normal down payment would be for the same car.

One of the major downsides of leasing is the mileage cap that is imposed. The lease contract will have a maximum number of miles that can be driven in a year; any miles driven over the limit will be calculated and added to the balloon payment which is often charged when the lease period is up. The lease may also demand that a certain minimum standard of service and maintenance be maintained, and it must be done only in approved facilities.

At the end of the lease period the vehicle can be purchased. The purchase price is usually in favor of the leaser as the car will be valued at Blue Book and if you have kept it well you can reap the rewards. If you do not exercise this option you simply walk away owing nothing and owning nothing.

There are many car dealers in San Antonio but there is only one that offers the best deal on new Chevrolet’s as well as a great stock of pre-owned cars and light trucks. Stop in today at Wommack Chevrolet or visit our website.

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