Should I Buy or Lease?
Should I buy or lease when it’s time to get a new vehicle? Neither option is inherently better than the other: there are benefits to leasing and benefits to buying. It all depends on your circumstances and how your drive in the Rogers area. When you buy a car, you’ll be paying for the entire cost of a vehicle. Most people do this with an auto loan, a down payment, and often a trade. When you lease a car, you’ll have it for a set amount of time (term). You’ll pay a portion of the car’s value each month, only paying for the time you use the car. Join Cornerstone Chrysler Dodge Jeep Ram as we take a closer look at both options and help you answer the question, “Should I buy or lease?”
BENEFITS OF BUYING
Owning a car in Anoka can be a great investment. If you take care of it, you may not need to buy another car for years, or you can sell it for a good price or trade it when you opt for something new. You’ll be able to drive as much as you want, and you can customize your car with accessories, add-ons, paint, bumper stickers, or performance enhancers.
WHO OWNS IT
A big benefit of buying is the car is yours and only yours. If you’re financing the car, your lender will require you to meet certain obligations, such as monthly payments or a down payment. Otherwise, your car can be repossessed. Even while you’re paying off the auto loan you still don’t have to worry about mileage or customization restrictions.
Financing a car means the bank or lender will need an initial payment from you, which is usually calculated according to your credit score, among other factors. You may also choose to trade in your old vehicle, the value of which can be put towards your down payment.
While the value of a new car begins to depreciate as soon as you drive it off the lot, you may be able to sell your car for a fair price as long as you maintain it properly. It’s important to visit a factory-authorized service facility like the service department at regular maintenance intervals for this reason. However, even a car in bad shape may be sold for parts or scrap.
END OF PAYMENTS
You’ll have to pay a certain amount as stipulated in your contract, but once you’re done, that’s it. The institution you borrowed from will send you a Lien Release, which is proof that the vehicle belongs entirely to you and may not be repossessed for nonpayment. The vehicle is now yours.
BENEFITS OF LEASING
A big benefit of leasing a car is that it’s more affordable on a monthly basis because you’re only paying a percentage of the total price. You won’t have to worry about getting a good price or finding a buyer in the Coon Rapids area when you’re done, as the dealership will take it back from you. If you like to have the newest gadgets in your car, leasing may be your best bet, as you can regularly upgrade to drive the latest models. You may also be able to drive a higher trim level than you could normally afford.
WHO OWNS IT
The institution through which you are leasing the car retains ownership. You’re essentially renting the vehicle. Your contract will state you’re using the car for a set amount of time in exchange for a set amount of money.
A lease doesn’t typically require a down payment, but you will have to provide the first month’s payment along with a security deposit, acquisition fee, and any other applicable costs. It’s possible to lower the amount of your monthly payments by increasing your initial fee.
Because you don’t own the car, you will return it to the leasing agency at the end of your lease. However, pay close attention to any mileage restrictions or wear and tear guidelines—excessive use may cost you extra when you return your vehicle.
END OF PAYMENTS
You usually just return the vehicle when your lease ends. However, you may be able to purchase it during or after the term of your lease, or trade it in before the term of your lease is over. If you think you might want to employ any of these options, ask your financing agent about them before the lease is signed.
BEST CARS TO LEASE
The amount you’ll pay for a lease is based on the amount of time you’ll have the car and the amount it will depreciate once you’ve driven it, so the cheapest leases are those for cars that will retain their value after the term of the lease is up. You can review lease ratings to see which cars will depreciate quickly and which cars will stay valuable.
Looking for a great deal on a new car lease? Check out our Chrysler lease deals available at Cornerstone Chrysler Dodge Jeep Ram and apply for financing with us to get a great deal, whichever you choose!