January 14, 2022
Decide for Yourself Which Is the Better Option
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So, you’ve finally decided to have a new car, but you don’t know whether to buy or lease one. Deciding which of the two options is better can be quite tricky. Both have their upsides and downsides.
To help you reach a decision, Veteran Car Donations presents the pros and cons of leasing and financing.
Benefits of Leasing a Car
- Lower monthly down payment
Car lease payments are usually lower than car loan payments since you’ll only pay for the car’s depreciation during the lease term, along with taxes, fees, and interest charges. If your concerns are on monthly costs, leasing is the way to go.
- Drive the car of your dreams
Perhaps the best thing about leasing a car is that you get to (temporarily) own a luxurious model as you’ve always wanted to. It may not be yours forever, but you can drive it perhaps for a couple of years.
- A new car every few years
If changing cars every three years or so is an idea you fancy, leasing should be your best bet. As soon as the lease is up, you can return it and get a new vehicle of your choice.
- No resale hassles
Selling your old car and negotiating a good price for it can be stressful. With leasing, you won’t have to go through that process. You simply return the car and pay for any end-of-lease fees.
- Worry-free repairs and upkeep
Since most new cars offer a warranty that lasts at least three years, you don’t have to worry anymore about shelling out cash for repairs or maintenance with a three-year lease.
Drawbacks of Leasing a Car
- Excess mileage penalties
Unfortunately, if you exceed a certain number of miles, normally 10,000 to 12,000 per year, you’ll need to pay additional charges.
- More expensive in the long run
Although the monthly down payments are generally lower, you’ll find yourself spending more cash over time. That’s because you don’t build equity and you have to pay certain fees that don’t come with a car loan.
- Wear-and-tear charges
Most leases will hold you liable if the car gets any damage during your lease term. You might be in for a shock when you discover how much you’ll pay after returning a worn-out car.
- Costly fees for early termination
If you decide to terminate a lease prematurely, expect to pay as much as sticking with the contract.
Benefits of Financing a New Car
- Ownership
You have complete ownership of the car and can keep it for as long as you want.
- Early termination
You can sell or trade the car any time you feel like it. You can even use the money from the sale to pay off any remaining loan balance.
- No mileage limit
You have the freedom to drive as many miles as you’d like. Bear in mind, though, that the higher the mileage, the lower the car’s resale or trade-in value becomes.
- Wear and tear value
While the car may depreciate, you can still use its cash value however you prefer.
- Freedom to customize
Having full ownership of the car means you have the choice to customize it whenever and however you want. Just a little heads up: This might void your warranty.
Drawbacks of Financing a New Car
- Higher monthly down payment
Because loan payments include the car’s full purchase price plus interest, taxes, fees, and other finance charges, you’ll be spending more each month than when you’re leasing.
- Selling or trading hassles
Once you decide to get rid of your car, you’ll have no choice but to look for a buyer. If advertising and haggling aren’t your strongest suits, it might take a while to get the job done.
- Warranty costs
You’ll be solely responsible for your car’s repair costs as soon as the warranty expires.
Not Sure What to Do with Your Old Car?
Since you’re thinking of getting a new set of wheels, you’re probably planning to dispose of your old one. If you want a quick, easy, and hassle-free way of doing that, one that will not cost even a single dime, contact us at Veteran Car Donations and simply hand over that vehicle to us. We can assure you of a highly rewarding giving experience, one that will allow you to be of service to the suffering veterans in your community.
We’ll auction off your donation and use the proceeds to support the life improvement programs and services of our veteran-focused charity partners. These IRS-certified 501(c)(3) nonprofits are dedicated to helping veterans who are homeless, unemployed, disabled, and suffering from illnesses, including mental health conditions.
Our charity partners provide their beneficiaries with free quality health care, financial aid, housing assistance, employment opportunities, family support, educational scholarships, psychotherapy services, and many other benefits.
As our donor, you’ll get to enjoy the maximum tax deduction based on the selling price of your vehicle during its auction. We’ll send you the 100% tax-deductible sales receipt of your car within days after its sale. You can then use this receipt to claim your tax write-off in the next tax season.
You’ll also benefit from our free pickup and towing service, which is available to our donors in all parts of the country.
Above all, you’ll have the ultimate pleasure and satisfaction of doing something extraordinary that can help uplift the lives of our nation’s heroes.
You can donate not just your old car but almost any other type of vehicle that you no longer need.
If you want to learn more about our vehicle donation program, including our speedy and highly convenient donation process, feel free to visit our FAQs page. For inquiries or concerns, contact us anytime through our toll-free hotline at 877-594-5822 or send us a message here.
Help Transform the Lives of Our Struggling Heroes Today!
Photo by Ivan Samkov under Pexels License
Out with the old, in with the new! Donate your no-longer-needed vehicle to us and get a new one. Your car donation will go a long way in helping uplift the lives of the hurting heroes in your area. Call Veteran Car Donations at 877-594-5822 or fill out our secure online donation form now!
Last Updated: March 8th, 2023