Leasing or Financing? Which One is Right for Me?
You have many decisions to make when buying a new vehicle. One of the biggest ones involves whether to finance or lease your automobile. Here at Sport Chevrolet, we'd like to offer some advice to help guide you in your decision.
How Does Leasing Work?
When leasing a vehicle, you’ll pay only the amount of expected depreciation, along with interest and fees. Accordingly, the lease amount is much less than a payment would be. At the end of your contract, you will return your leased vehicle to the dealership, who will then sell it outright at its new, depreciated rate.
Since your lease is based on anticipated depreciation, there are restrictions designed to ensure the vehicle loses as little value as possible. Accordingly, you will need to keep up with all scheduled maintenance and will likely have restrictions on the number of miles you are able to drive.
You won’t actually possess the title to a leased vehicle. Even so, you are still responsible for maintenance, repairs, title fees, and insurance.
When is Leasing Ideal?
Maybe you have never thought about leasing a vehicle before and are wondering whether or not to consider it. Leasing can be the right choice if you:
Cons to Leasing an Automobile
Although leasing does have many advantages, there are a few downsides too, including:
Benefits of Buying Outright
When you buy outright, you must pay the cost of the vehicle as well as interest on any amount you borrow. However, once you are done making payments, you then own your automobile free and clear. As such, this is probably a better choice if you plan to hold onto your car for several years. Likewise, if you have a significant down payment or are planning to trade a vehicle in, you may want to consider buying instead.
When you own your own car, you are free to do whatever you want with it, including adding new accessories. You are even free to drive as many miles as you'd like without worrying about possible surcharges later.
Is Purchasing the Right Choice?
Most people are more familiar with purchasing a vehicle than they are with signing a lease. But just because that is what you are used to doing does not necessarily mean that it is the right choice. Buying rather than leasing can be the better option for those who:
Ready to Buy or Lease a New Vehicle? Come and See Us Here at Sport Chevrolet
When it comes to leasing versus buying a vehicle, there's no answer that's right for everyone. This is a choice that only you can make, but that doesn't mean you have to do so alone. Our finance team will be happy to assist you in this matter, but we will always leave the final decision up to you. Stop by our dealership today, test drives a new vehicle, and let us answer any questions you may have.
How Does Leasing Work?
When leasing a vehicle, you’ll pay only the amount of expected depreciation, along with interest and fees. Accordingly, the lease amount is much less than a payment would be. At the end of your contract, you will return your leased vehicle to the dealership, who will then sell it outright at its new, depreciated rate.
Since your lease is based on anticipated depreciation, there are restrictions designed to ensure the vehicle loses as little value as possible. Accordingly, you will need to keep up with all scheduled maintenance and will likely have restrictions on the number of miles you are able to drive.
You won’t actually possess the title to a leased vehicle. Even so, you are still responsible for maintenance, repairs, title fees, and insurance.
When is Leasing Ideal?
Maybe you have never thought about leasing a vehicle before and are wondering whether or not to consider it. Leasing can be the right choice if you:
- Prefer to have a newer car and tend to trade every two to three years
- Normally drive somewhere between 10,000 and 15,000 miles per year
- Are pretty good at keeping up with scheduled maintenance and are willing to hold onto all receipts
- Want a more expensive car and would be unable to afford it if you were making payments.
- Would like the option to buy at the end of the lease agreement but are not ready to do so right now.
Cons to Leasing an Automobile
Although leasing does have many advantages, there are a few downsides too, including:
- Having no ownership interest in the vehicle. In most cases, this means you are unable to trade or sell until your contract is over.
- Being restricted from making upgrades such as new wheels or an improved stereo system
- Possible penalties for excessive mileage or unusual wear and tear
- Trade-ins are normally not considered
Benefits of Buying Outright
When you buy outright, you must pay the cost of the vehicle as well as interest on any amount you borrow. However, once you are done making payments, you then own your automobile free and clear. As such, this is probably a better choice if you plan to hold onto your car for several years. Likewise, if you have a significant down payment or are planning to trade a vehicle in, you may want to consider buying instead.
When you own your own car, you are free to do whatever you want with it, including adding new accessories. You are even free to drive as many miles as you'd like without worrying about possible surcharges later.
Is Purchasing the Right Choice?
Most people are more familiar with purchasing a vehicle than they are with signing a lease. But just because that is what you are used to doing does not necessarily mean that it is the right choice. Buying rather than leasing can be the better option for those who:
- Tend to keep their vehicles at least 4 or 5 years
- Perform maintenance themselves or do not strictly adhere to manufacturer's guidelines
- Drive a greater-than-average number of miles each year.
- Want to modify their vehicles to better suit their own tastes.
- Have an older model they would like to trade-in.
Ready to Buy or Lease a New Vehicle? Come and See Us Here at Sport Chevrolet
When it comes to leasing versus buying a vehicle, there's no answer that's right for everyone. This is a choice that only you can make, but that doesn't mean you have to do so alone. Our finance team will be happy to assist you in this matter, but we will always leave the final decision up to you. Stop by our dealership today, test drives a new vehicle, and let us answer any questions you may have.
