So I have just recently become the owner of a new Jeep Cherokee back in the spring time, and to be honest, it was my first real experience in looking to purchase a car, as I am fresh out of business school (where I didn’t need a vehicle) and working full time. Anyway, I chose to go with a lease on the vehicle for a variety of reasons (price being one as well), but there really are both pros and cons to buying or leasing vehicles. No matter what choice you make though, there is one constant here- all of these vehicles need CT auto insurance of course!
Now, if you’re like me, you love visual aids- charts, graphs, tables, etc. Words upon words upon words can get pretty mundane unless the subject is EXTREMELY gripping and interesting, but overall, I’m a chart guy. So, as luck might have it, I found this awesome chart that breaks down everything you would need to know about the differences of buying or leasing a vehicle. But again, just remember, you’re going to need CT auto insurance no matter which road you decide to venture down!
|Ownership||You own it… so you can keep it as long as you want.||Think of it as renting. You get full use of the vehicle, but you don’t own it and have to return it when the time comes.|
|Up-front costs||Standard things like a down payment, taxes, registration, etc.||Usually it’s the first month’s payment, a deposit, and THEN the down payment, taxes, registration, etc.|
|Monthly payments||These are more often than not higher because you’re paying for the whole vehicle.||You’re only paying for the deprecated value of the car, so these are usually lower monthly payments.|
|Future value||Cars depreciate, we all know this. But the value of the car is 100% yours.||Again, like the rental house analogy, you don’t have any financially equity in the vehicle since you don’t own it.|
|Mileage||It’s yours… drive as much and as far as you want||Almost all leases have mileage limits, usually between 12-15k miles per year.|
|Excessive wear and tear||Again, it’s yours so you can treat it as wonderfully or poorly as you please.||It’s your butt if more than normal wear and tear is on the vehicle when your lease is up.|
|End of term||When you’re finished paying off the loan, you officially own the vehicle and now have equity in it that you can use to assist you in paying for a new one.||That’s it, it’s no longer yours- unless you want to then purchase the vehicle, in which case you’ll have to finance it or buy it out right. Your call.|