Should You Buy Or Lease Your Next Car? Make Sure It’s Covered With Car Insurance In Chicago, IL

March 17, 2016

Buy or Lease, you need car insurance in Chicago, IL!

It’s time to look for a new car. You’ve chosen the car you like, but you don’t know whether or not it’s better to lease or buy the new car. While each option has its benefits, they also have their disadvantages. Ultimately it depends on what works best for your lifestyle. Be sure to weigh the costs and benefits with this helpful guide, but no matter your choice, be sure to protect your new ride with car insurance in Chicago, IL.

Buying A Car:

When you buy a car, the car is yours. You can do with it whatever you wish. From putting in fancy tires to going on a road trip whenever you feel like it, buying a car gives you more freedom. However, in the short term, buying a car is more expensive than leasing.

Pros:

• Greater flexibility. You can drive as many miles that you’d like and you can sell your car whenever you like.
• More cost effective in the long run. Once you pay off your car, you’re free from monthly car payments.

Cons:

• Greater cost at the start. With a higher down payment and greater monthly payments, it’s more expensive in the short term to buy a car.
• Maintenance responsibility. When your car breaks down, you’re responsible for all of the repair costs once your warranty ends.
• Value depreciation. Unlike other investments that have the potential to increase, once you drive your car off the lot, the value of your car will always decrease.

Leasing A Car:

When you lease a car, you’re essentially renting the vehicle for the term of the lease. You have lower monthly payments and much lower repair costs. But, when you lease a car you’re more limited. You don’t own the car and your mileage usage is predetermined. Plus, in the long run, leasing is more expensive than buying a new car.

Pros:

• Lower payments at the start. Monthly payments are much less expensive when you lease a car, but you’re just renting it.
• Easy trade-in. When your lease is up, it’s easy to trade in your car for a new one.

Cons:

• You don’t own the car. You’re making payments on something that you’ll never own. You’re at the discretion of the car company.
• It’s costly to end the lease. If you need to get out of your contract before the lease is up, expect to pay some hefty fees.

Determine what makes the most sense for your needs when deciding whether to lease or buy a new car. Protect you new vehicle with the best car insurance in Chicago, IL. Have the professionals at Thomas Ward Insurance help you find the right insurance! Located in Chicago, Illinois, we serve all your personal and commercial insurance needs. Contact us for more information.