Time for a New Car? Leasing vs Buying in Mississippi
Getting a new car is a big decision: unless you have the cash up front, which most of us don’t, it means years of monthly payments. Before jumping into buying one you should consider the pros and cons of leasing vs buying. Buying your vehicle outright comes with many benefits such as not having to worry as much about damage, while on the other hand most leases have damage penalties and may even request your car back for repairs.
With a lease not only will you end up paying more but you will most likely not have access to the car during this time. However, leases do offer the advantage of not being totally committed to one vehicle. Buying a car is a long-term commitment so picking the right purchasing method is critical.
Benefits of Leasing a Car
With a lease, you only have to wait for your term to be over. You can also sometimes find someone to take over the lease. While returning the vehicle and ending the lease early is expensive, it is still less than paying for the whole car outright. You are also legally covered in the case that your leased vehicle is damaged or defective.
Advantage of Lemon Law and Leasing
Mississippi is a state that does have Lemon Laws; in place. Lemon law is a legislation that protects consumers from being stuck with defective vehicles. Concretely, it means that up to one year after the start of your lease if you find consistent issues with a specific part or function then you can end your lease and are legally owed a full refund.
Besides being able to get full refunds and lower commitment, leasing a vehicle is advantageous in that:
- It has fewer upfront costs
- Lease payments are typically less than monthly car loan payments
- Loss of value doesn’t affect your finances
Benefits of Buying a Vehicle
The biggest benefit of buying your car outright is that you’ll end up paying less in the long term. With a lease, you will have to pay to keep the car after your term is up which means you ultimately end up spending a bit more in payments and fees in the end.
You also do not have to worry about mileage limits. With lease vehicles, there are often specific limits to how much you can drive the car. An average mile limit would be around 12,000 to 15,000 miles per year. If you plan on driving thousands of miles or going on road trips, then you don’t want to use a leased car. And while 12,000 may seem like a lot for the span of a whole year, a little division tells us that if you drive every day than that’s a 32-mile limit per day.
Pick the Right Option for Your Situation
Ultimately the decision of whether to buy or lease is up to you and which better suits your lifestyle. If you don’t drive a lot and want a brand-new vehicle after a couple of years, then leasing is the right choice, while on the other hand fully owning your car means not having to worry about leasing fees and mile limits.
If you find that you need help getting your finances in order, then an installment loan may offer the relief you need. Mississippi residents can find their nearest loan provider location here and get the funds they need with same-day approval at Mississippi Title Loans, Inc..
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.