Buying vs. Leasing a Vehicle
One of the most common decisions faced by new car shoppers is choosing whether it’s better to buy or lease their next vehicle. Although you might have heard them used interchangeably, both choices offer their own set of advantages and perks that are worth considering. To help clear up any confusion, our team of experts at Preferred CDJR of Muskegon has created this helpful guide that outlines the benefits of leasing and the benefits of financing your next vehicle purchase. You’ll have no trouble deciding the right choice for your lifestyle and budget.
Benefits of Buying a New Vehicle
Flexibility
One great perk that comes from financing your vehicle is the fact that you’ll avoid the lengthy list of restrictions that are typically included in a lease contract. Are you the type of driver who likes to add a personal touch to your vehicle in the form of an accessory or aftermarket parts? Go right ahead! You’ll also have the freedom to drive as many miles as you’d like, whenever you’d like! Lease contracts usually have plenty of mileage restrictions and clauses that prevent you from modifying your vehicle.
Affordable Payments
In comparison to a typical lease contract, purchasing your vehicle and choosing a longer finance contract term can be a perfect solution for finding the low monthly payment to suit your budget needs. While lease contracts typically only last 36 months, finance terms are available for 48, 60, 72, and sometimes even 84-month terms. Our useful payment estimator tool makes it simple to see just how much you’ll be paying on a monthly basis.
Attractive APRs
Eligible buyers may be able to take advantage of outstanding finance rates along with low APRs on their next vehicle purchase. When you factor in just how low these rates can be, financing your new car is often a more financially beneficial idea compared to leasing. That’s even if you were considering paying the full purchase price in cash!
Ownership Equity
At the conclusion of a lease contract, most drivers return the vehicle and walk away with zero equity. That’s not the case when you finance your vehicle! Once your final payment is made, you take 100% ownership of the vehicle. Drive it payment-free for years to come or leverage your ownership equity as a down payment for your next ride when you’re ready to upgrade. The choice is yours!
Benefits of Leasing a New Vehicle
Affordable Lease Payments
Another way to look at a lease contract is to consider the fact that you’re essentially paying for the portion of a vehicle’s lifespan that you’re actually using. As an example, let’s imagine that the average lifespan for a new vehicle is approximately 10 years. Since you’re only leasing the vehicle for the first 2 or 3 years of its life (depending on lease terms), this saves you money in the long run in comparison to purchasing the vehicle.
Low-Cost or Zero-Cost Maintenance
In most cases, your leased vehicle will be covered by factory warranty protection for the entire duration of the lease term. In the unlikely event that any issues arise, you’re protected from unexpected repair costs. Certain brands even offer complimentary maintenance programs that can further maximize your savings.
Flexibility
Life can be unpredictable. Sometimes, major changes to your lifestyle can impact your driving needs. By leasing, you’ll enjoy the flexibility to change to a different model after only a few years (depending on your lease term). Have you added a new member to your family? Leasing makes it simple to upgrade to a larger vehicle when your contract ends. Made a career change that now involves a longer commute? It’s easy to transition to a more fuel-efficient model at lease-end time!
No Impact on Trade-In
Nobody likes to think about how much their new vehicle will depreciate in the future. Fortunately, leasing means that you won’t have to deal with any of this uncertainty. Once your lease contract concludes, you can simply return the vehicle and choose your next lease without thinking about potential resale value. That’s for the bank to worry about!
Buying or Leasing – Frequently Asked Questions
Can I purchase the vehicle at the end of my lease?
It’s totally understandable that you’ve grown attached to your leased vehicle. Thankfully, the majority of lease contracts include a clause where you can purchase your vehicle at a predetermined price. Our team is standing by to help you pursue this option if you’re not quite ready to say goodbye.
When is the best time to lease a car?
We’re always offering competitive lease rates here at Preferred CDJR of Muskegon! For maximum savings, you could consider waiting until just after a new model year has debuted. This is due to the fact that these models will have the highest residual values during this timeframe. The benefit to you is protection from high depreciation costs. Remember, we can help you maximize your savings on your next lease regardless of the time of year!
What if I have a sizable sum of money saved up for a down payment? Is it better to buy or lease?
Bravo for saving up for your next vehicle! Large down payments are a great way to keep your monthly payments manageable and to pay off your vehicle sooner. Depending on the amount, you could potentially lower your monthly payments to levels as low as a lease!