If you are new to the purchasing process, you may have a lot of questions about financing a car. That’s okay! Even seasoned car buyers have questions. When discussing buying or leasing a car, there are a lot of factors to consider. One question we get a lot pertains to leasing prices. Why is leasing more affordable than buying a car on a monthly scale? And does that mean leasing is a better investment for you?
It’s important to delineate the differences between leasing and buying a car. When you buy a car, you are investing in it for the long term. You are also buying it at market price. Thus, your monthly price is derived with that in mind. However, when you lease a vehicle, you are not buying it. In fact, leasing is more akin to renting than buying. You are paying a static monthly price over the course of a number of months. Therefore, when you lease, you are paying for the vehicle’s depreciation while you are driving it.
Because of that, leasing is often more affordable on a monthly basis. However, that doesn’t mean it’s automatically a better option for you. Leasing is a short-term option. Plus, with mileage parameters some drivers may find it to be too restrictive. However, if you are looking for a short-term vehicle for city or professional driving, leasing may be for you.
If you would like to learn more, stop by Audi Fairfield, located in Fairfield, CT. Our team would be proud to assist you!
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