Leasing vs Buying: Which is Right for You?
So, the time has come to start looking for a new car here in the New Holland, Lancaster, and Reading, PA, areas. You have a good idea of what you’re looking for and where to find it. But still, you’re torn on whether you should lease or buy.
Well, the New Holland CDJR team won’t leave you wondering any longer. In this article, we’ll break down the fundamentals of each choice to help you make the most informed decision possible.
Understand the Differences Between Leasing and Buying
When it comes time to finance your next car, you’ll have two main options: Leasing and buying. Each one has a range of different benefits, helping you to get the monthly plan that works best for you.
But, what’s the difference between these two options? Let’s dive in.
What is Leasing?
Leasing a car involves renting it for a set period of time, usually two to three years. During this time, the lessee pays a monthly fee to the lessor, the car dealership, in exchange for the use of the car. At the end of the lease term, the lessee returns the car to the lessor or opts to buy out the lease to own the car.
What is Buying?
Buying a car involves purchasing it outright, either with cash or through financing. When you buy a car, you become the owner of the vehicle and can keep it for as long as you like. However, you'll also be responsible for maintenance and repairs over time.
How Can Leasing or Buying Benefit You?
What really sets leasing and buying apart though is their different perks. Let’s take a look and see which option has the benefits you’re most interested in.
Benefits of Leasing
One of the main benefits of leasing a car is that you'll have a lower monthly payment compared to buying a car. This is because you're only paying for the car's depreciation during the lease term, rather than the full value of the car.
A lower monthly payment can even allow you to upgrade to a higher trim level than if you were to buy the same vehicle. Higher trim levels come with more amenities, comforts, and technology that you’re sure to enjoy for years to come.
Leasing also allows you to drive a new car every few years, which can be appealing if you like having the latest technology and features. Trading in for a new lease regularly is also simple and can be done entirely through the dealership.
Additionally, since the car still belongs to the dealership, most maintenance costs will be covered through the lease agreement. Regular services such as oil changes are usually all part of the lease plan.
Benefits of Buying
One of the main benefits of buying a car is that you'll have complete ownership of the vehicle. This means you can customize the car, drive it as much as you like, and keep it for as long as you like. Lease agreements usually come with yearly mileage restrictions, but when you buy this won’t be a concern.
Buying a car can also be a good investment if you plan to keep it for a long time, as the value of the car will eventually stabilize and may even appreciate in value if it's a classic or rare car.
Another benefit of buying is that you can sell the car whenever you choose and then use that money towards your next vehicle purchase. Trade-ins are also easily done at dealerships to get you behind the wheel of a newer ride.
Leasing vs Buying: Next Steps
So, what comes next? Now that you know a bit about leasing and buying and how they differ, you may be interested in starting the financing process. No matter which option you’re choosing, the process can be fairly simple, especially when working directly with the finance center at your chosen dealership.
How to Lease a Car
To lease a car, you typically need to provide a down payment, however there are different lease deals that may not require this. Once you've been approved for the lease, you'll sign a contract that outlines the terms of the lease, including the monthly payment, mileage limits, and any fees associated with the lease.
Most lease agreements are customizable, so work with the financer to get the teams that work best for your lifestyle needs.
How to Buy a Car
To buy a car, you'll typically need to provide a down payment and finance the rest of the purchase price. Down payments are usually 20 percent of the car’s total value, however there may be other terms you can discuss with the finance expert.
Financing can be done through a bank or through the dealership, and you'll make monthly payments until the car is paid off. Once you've paid off the car, you own it outright.
How Should You Finance Your Next Car?
Ultimately, the decision to lease or buy a car should be based on your personal needs and preferences. Leasing can be a good option if you want a lower monthly payment and like driving a new car every few years. Buying can be a good option if you want complete ownership of the car and plan to keep it for a long time. Whichever option you choose, make sure to do your research and consider all of the factors involved to make the best decision for you.
Learn More About Your Options
These are certainly the nuts and bolts of leasing and financing. However, New Holland, Lancaster, and Reading, Pennsylvania drivers may have additional questions about how an option might work.
To learn more, all you’ve got to do is get in touch with the New Holland CDJR team. Over the years, our on-site finance team has worked with a wide range of drivers to create the finance terms that work best for them, and we’re excited to do the same for you.
Contact us today to learn more and get started on buying or leasing your next Chrysler, Dodge, Jeep, or Ram.
