Leasing vs. Buying
After choosing the car that best suits your lifestyle, you may wonder whether to lease or buy. Like the choice of brand, model, and specifications, this decision should be based on your priorities regarding ownership and budget.
In this leasing vs. buying guide, our experts from Thornhill Chrysler Dodge Jeep Ram (CDJR) will break down each type of financing, its benefits, and what you should consider before making this decision as a driver near McConnell, Logan, and Henlawson, WV.
One of the key differences between buying and leasing is ownership. When you lease, you don’t own the vehicle. You'll be behind the wheel of a dealership’s vehicle for an agreed-upon time or mileage and pay for its usage through a monthly payment. You’ll be returning the car to the dealer when the lease expires.
On the other hand, buying gives you full ownership of the vehicle, and you can keep it for as long as you want. In this case, you will most likely take a loan from a bank that will divide the total cost of the vehicle into monthly payments.
You have absolute ownership once you buy a car, whether upfront or financed. That means you can drive it for as long as you wish without distance restrictions and decide when to sell it.
Typically, lease payments are lower than those for a financed vehicle. However, owning a car allows you to sell it and recover some money.
Regarding upfront costs, if you buy a vehicle, you may need to make a down payment upfront. You also need to pay taxes and registration fees. For leased vehicles, upfront costs usually include the monthly payment, acquisition fee, refundable security deposit, and tax payments.
Mileage and Time Are Also Important
"How often do you drive?" is another important question to consider when making this decision. Typically, a leasing contract comes with mileage restrictions of 10,000 to 12,000 miles per year. This means you will pay a fee if you exceed this mileage. However, it also allows you to drive a new vehicle every few years.
On the other hand, buying doesn't have these restrictions if you often drive long distances or plan to keep your car for a long time.
As a lessee, you will likely receive a warranty covering routine maintenance during the lease period. When you choose to buy, you may also have maintenance and repairs covered under warranty up to a specific mileage mark.
Customization and Decision-Making
Buying may be the better option if you are considering acquiring a car to customize it. As mentioned earlier, one of the main differences is ownership. If you own the car, you can make all the decisions about your vehicle. In most leases, modifications to the vehicle are not allowed.
There is no one-size-fits-all answer to the leasing vs. buying question. Before deciding whether to buy or lease your next Chrysler, Jeep, Dodge, or Ram, you should consider various aspects of your lifestyle and budget that will be key to finding the best option.
Suppose you haven't decided yet or want to calculate how each option would work with the car you want. In that case, our finance professionals at Thornhill CDJR, near Logan, McConnell, and Henlawson, West Virginia, are ready to advise you on the path that suits you best. Visit us today!