Buying vs Leasing

 

Getting a new car can be confusing, let the Ray CDJR team help guide you!

Starting off a new month with a new car has never been more exciting and stress-free than leasing or purchasing from Ray CDJR! If you are wondering is it better to lease or buy a car from Ray Chrysler Dodge Jeep Ram, come in today to speak with our knowledgeable finance team and explore the pros and cons of each option.

Leasing Pros and Cons

There are many reasons and situations that make leasing a car a sensible choice. However, one should be aware of leasing vs. buying a car pros and cons before making such an important decision. The pros of leasing a car can be attractive and worthwhile. When leasing a car, the consumer will experience the benefit of lower monthly payments and a lower down payment on a vehicle. The consumer will also enjoy the latest technology offered on newer vehicles leased, and the leased vehicle will have warranty and maintenance coverage. With leasing, you also save money on sales tax, and trading-in a leased vehicle is easier.

The consumer should also carefully examine the cons of leasing a vehicle. Obviously, when you lease a vehicle you do not own the vehicle at any point which results in no equity and no cash for trade-in options, and you will always have a car payment upon leasing. Due to the binding nature of a lease contract, the customer will not be able to customize the leased vehicle, there can be strict mileage limits during use, there are restrictions on how you can use your vehicle, you must keep your leased vehicle in great condition, and you are limited where you can go to fix your vehicle. On the financial side, leasing a car is a complicated financial process that may prove more difficult with bad credit. Lastly, the consumer may find that there are surprising lease-end costs, gap insurance may be needed, and lease deals may be limited.

Buying Pros and Cons

The same factors of leasing a car can apply to buying a car. The pros of buying a vehicle include the advantage of owning the vehicle, being able to drive the vehicle as much as you want, the equity built to sell or trade-in at any time, your freedom to customize the vehicle, payments end, financing can be easier, refinancing down the road can be beneficial, and you control the maintenance of the vehicle.

While the cons of leasing are numerous, the cons of buying may be less intimidating. Obviously the vehicle is more expensive to purchase in the short term, and the down payment may be larger upon buying. The consumer will also may experience a higher sales tax and will have to pay the interest on the entire cost of the car. Lastly, the car's future value is unknown and the warranty will eventually end.

Buying	Leasing
Who Owns It Whether you pay for the car with cash, or finance it and make monthly payments, either way, it's yours. Of course, if you're financing it, you'll have to meet the obligations the lender requires, like a certain down payment amount and timely monthly payments. If you don't, they have the right to repossess it.	Who Owns It You do not own the car when you lease. You're paying for the use of the vehicle, but the finance institution that you leased it through actually owns it. This is usually why you pay less per month in a lease than if you were to buy the car.
Up-front Costs If you're financing it, the bank will probably request a down payment. You can also trade-in another vehicle and use any equity towards your down payment. The amount of the down payment is usually based on the lender's  requirements and your credit score.	Up-front Costs Leases often do not require any type of a down payment. All you usually have to pay is the first month's payment, a security deposit, the acquisition fee and other fees and taxes. But, as with a purchase, if you want to lower your monthly payments you can always pay more upfront.
Future Value Your vehicle will be worth whatever you can sell it for in the future and that depends on how well you maintain it. (Be smart and protect your investment with regularly scheduled maintenance by a factory-authorized facility!)	Future Value In most leases, you don't end up owning it so you don't end up selling it. That's the financial institution's job. Although you may have mileage limits and wear and tear guidelines that, if you exceed them, could cost you extra money when you turn your vehicle back in.
End of Payments Once you've paid off what you owe on your contract, that's it. Your vehicle is 100% yours. The lending institution will send you a Lien Release as proof that the vehicle is completely paid off and all yours.	End of Payments Most people return the vehicle at the end of the lease term. But some like to purchase it during their lease or at the end. Others like to trade it in before their lease is over. Just ask us about these different options before signing any paperwork and we'll make sure you have your lease set up the way you want it.
	Best Cars to Lease The best cars to lease are those with the best book value after the term of the lease. Since they depreciate less, you pay less. Review the lease ratings to see which cars retain their value.

Stop by Ray Chrysler Dodge Jeep Ram Today!

As the number one choice of Fox Lake car dealers, Ray CDJR continues to build upon its tradition of excellence and trustworthy car purchasing, sales and service. If you are in the market to lease or buy a Jeep, Ram, Chrysler, or experience an exciting Dodge, come in today to speak with our finance department about the pros and cons of buying or leasing a vehicle. Visit us at 23 N. Route 12, Fox Lake, IL. or call us at 844-351-7490. We hope to see you soon!