Car Leasing Vs. Car Buying in Kansas City

Whether it’s at the beginning or the end of the process of searching for a new car, truck, or
SUV in Kansas City, you’ll need to determine if you want to purchase or lease. Is it better to pay more over a
longer period of time to own the vehicle, or is it better to pay a lower amount to have the car in your care for
some time and then repeat the process in a few years?

Only you can decide which is best for you, and it often comes down to budgeting, but we’ll
review the perks and drawbacks of buying vs. leasing a vehicle to help you determine which path to take.

Buying a Vehicle in Kansas City

The Basics:

You find the new car, truck, or SUV you like, and it feels comfortable to drive and negotiate
a price that works for your budget and the dealership. You can also lower the overall cost by trading in your
current vehicle, and the more you put towards a down payment will lower the amount you need to borrow as a loan.
The lower the loan = the less you pay monthly.

When purchasing a car, you can choose the accessories and features you want and need
in your vehicle. If you want to upgrade the sound system to turn every drive into a private concert or front-row
seats to your favorite podcasts, that’s an easily accessible possibility. You also can drive as much as you
want. Have a big road trip lined up? You can drive as much as you want without fear of breaching a contract.

Once your loan is paid back, you own the car outright. Working with a trusted finance center
at a dealership is one of the best things you can do. For example, our team works with our vast network of
trusted lenders to find you the best rates to make the vehicle of your dreams a reality. No matter what your
credit score is, we’ll help you drive off the lot happily and confidently.

The Drawbacks:

The unfortunate truth is that 99% of cars start to lose value the second you drive
away from the dealership, which means you won’t get the best return on investment if and/or when you decide to
sell it. Now, to be fair, as opposed to a lease, you can sell it when you choose to.

Buying a vehicle will be more expensive upfront because of the down payment, but the monthly
payments will likely be lower. You’re also subject to sales tax and interest on the total value of the vehicle.
You’ll have a warranty, but coverage will likely end before you sell, which means repairs for costly damages
will fall on you (transmission, alternator, etc.).

Leasing a Vehicle in Kansas City

The Basics:

A lease is effectively renting the car, but at a much lower rate than purchasing the car
outright. Most leases last 2-3 years, and during that time you’ll have a contracted number of miles you can
drive before you start to incur penalties (in the form of fees). To put it in the simplest terms and
perspective, you’ll pay less for the lease during the 2–3-year period than you would during that same amount of
time if you purchased the vehicle.

When you lease, you get the latest features in new vehicles and can enjoy the ride vs. driving
an older model that doesn’t have all the flash that other vehicles do. You also don’t have to worry about the
car depreciating in value. Speaking of value, the warranty will cover most if not all of the lease period, so
maintenance costs are low if not $0.

The Drawbacks:

Once the lease ends, you’re back at square one, needing to pay a down payment and go
through financing. You’ll also have to adhere to the mileage limits of your lease, the upper limit of which is
usually around 15,000 miles per year. If you’re someone who likes taking road trips, a lease may not be the best
option.

While you get all the latest tech and safety features, there’s little room for
customizing the vehicle to your liking — what you see is what you get. While the warranty will cover most
maintenance tasks, it doesn’t cover all of them, and you’ll need to go to specific service centers and use
manufacturer’s parts, which can be a bit more expensive, but they won’t void the warranty.

You also need to be on top of your payments as failure to pay can be seen as breaking the
leasing contract and, therefore, incurs some hefty fines.

Buy or Lease Your Next Vehicle in Sedalia

No matter your choice, buying or leasing your next vehicle with McCarthy guarantees you’ll get
the best rates and the highest quality vehicles that will run reliably and keep you and your passengers or
family safe. Contact us at one of our locations for more information or to set up a test drive.