Leasing or Buying

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For those of you who do not know the difference between leasing and owning a car, this blog is for you. This choice between leasing and buying has been a controversial conversation piece. There are many reasons why each is the ideal choice. However, one may be a better option for some rather than for others. More people are gravitating towards the idea of a lease over a car loan. So here is how you find the best deal for you!

What is leasing: leasing a vehicle is another form of financing. Monthly leasing payments are how you pay for the depreciation put onto the car as well as amount due at signing.

What is buying: this is when you purchase a vehicle and pay the entire price through; outright payments or financing. This is found to be the most popular route people take. Financing involves getting a loan from a bank or credit union of some sorts.

There are pros and cons to each leasing and buying.

Leasing Buying:
- No ownership- return at end of contract
- Often lower monthly payments
- Future value has no affect on your wallet
- Limited mileage
- Excessive wear and tear charges
- Purchase, renew, or walk away

Buying:
- Full ownership of vehicle (usually longer terms)
- Loan payments can be higher
- Vehicle value depreciate
- No mileage cap (may lower trade in value)
- Worry free wear and tear (may lower trade in value)

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So how do you decide which pathway is right for you? Well, it depends on your own finances and use of your vehicle, and your long term plans for your vehicle. However, the best option for everyone, whether buying or leasing, is to do your research. Come down to the Mercedes-Benz of Tacoma located in Fife, Washington to get all your questions answered. Find out which option we advise and any help you may need throughout the process.
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