Buying vs Leasing a New Vehicle
If you’re shopping for a vehicle, there’s no getting around the question: “Should I lease or buy?” Buying and leasing are both beneficial options, and in the end it all depends on the driver. Your financial status, driving goals, and driving habits can help you determine whether you should buy or lease your next car. Below, you’ll find a quick overview of the advantages of buying and leasing new vehicles. Read on to see which best suits your needs and lifestyle!
When is Buying Best?
If you have children or pets, drive long distances, or enjoy personalizing your vehicle, you’d likely be happier buying from us at Wilsonville Jeep Ram. Upfront costs include a down payment, taxes, registration fees, and other charges. Monthly loan payments are also usually higher than monthly lease payments. This is because you’re repaying the lender for the vehicle’s entire cost, and working toward complete ownership, one payment at a time. Once the title is transferred to you, you’re free to drive and customize the vehicle without penalties or restrictions.
Of course, buying is a more solid option for drivers shooting for long-term ownership. Your vehicle will belong to you indefinitely, and you can sell it or trade it in at a dealership whenever you see fit. While depreciation is often a concern for new car buyers, you’ll have the option of selling your vehicle down the road and pocketing the profit or putting it toward another vehicle. Also, if there’s wear and tear to your vehicle, its overall value will likely lessen, but you won’t have to pay a penalty when you’re ready to trade in or sell.
When is Leasing Best?
At the surface level, leasing is like buying. If you lease a new vehicle, the entire value of the vehicle, excluding down payments or trade-in values, is borrowed from a lender and given to the dealership. You’re still responsible for making monthly payments, so long as your lease is active. The major difference, however, is the repayment amount. Monthly payments are lower than a financed vehicle, because they’re only repaying the depreciation of a vehicle during their lease term.
Leasing tends to be the more financially flexible option, allowing you to return your leased vehicle, pay any end-of-lease costs, and move on. In general, leases come with limited mileage and no customization options, but a major upside is the constant exposure to exciting new features. Lease terms are generally shorter than financing terms so you can drive a new care more often. Be it fresh powertrains, stylings, or infotainment and safety systems, you’ll gain access to the latest developments from the manufacturer. Of course, if you fall in love with your leased vehicle, you can work with our finance department to purchase the vehicle outright.
Wilsonville Jeep Ram is Here to Help!
Contact our Wilsonville dealership for answers if you’re still unsure of whether you should buy or lease a car. If you have a car in mind, schedule a test drive online or simply visit us at 25600 SW Parkway Center Drive in Wilsonville, OR. Our regular business hours are 9:00 a.m. to 7:00 p.m. Monday through Saturday, and 10:00 a.m. to 6:00 p.m. on Sunday.