Huzzah! A new Illinois sales tax law
has lowered the overall cost of leasing a vehicle which means it's now
an even more viable option for drivers who aren't able to afford to buy a
new car outright. While buying a car is still a great option, leasing
is an excellent alternative depending on your financial situation. If
you've never leased a vehicle now is the time to start considering it!
Here's a quick breakdown comparing buying and leasing a vehicle.
Leasing
Taking out a lease was already more affordable compared to buying for most drivers and the new sales tax law makes it even more feasible! A lease is essentially a long-term rental where you pay the difference between the new value and predetermined resale value at the end of the contract. As a result, monthly payments are cheaper as you aren't paying the full price of the vehicle.
Benefits to leasing a vehicle include repair coverage via the new car bumper-to-bumper warranty, the latest technologies, and a new car every few years.
On the downside, mileage and modification restrictions are standard among all lease contracts. Most lease offers require a high credit score as well.
Make sure to read a lease contract thoroughly to ensure you accept all of the terms!
Buying
Buying a vehicle is the option of choice for drivers who intend on keeping the vehicle for a long time. There aren't any major bills outside of general ownership costs like insurance and repairs, once the loan has been paid in full. There aren't any mileage or modification restrictions either. You can also sell the vehicle at any point in time.
Unfortunately, buying a vehicle usually means a large down payment and higher monthly payments compared to leasing. A long-term loan could be in the cards for drivers who struggle to fit the monthly payments into their budget. All repair costs come out of your pocket once the warranty is up.
If you have any further questions about which method is best for you, just visit us at Tri Ford in Highland, IL today!