Buying vs Leasing
Are you wondering whether it makes more sense for you to buy a new car or to get a lease? Only you can decide what will work best for you, but here are some of the major differences between buying and leasing a new vehicle to help you understand all of your options.
At Peake Chrysler Dodge Jeep RAM Fiat our mission is to make sure that all of our customers understand their leasing and financing options when they’re looking for a new vehicle in the Sodus, Rochester, and Ontario, New York area. If you have a new vehicle you’d like to make yours, we will walk you through all of your options to help you determine what purchase type is going to work the best for you!
Buying – When you purchase a vehicle you own it and get to keep it as long as you want it.
Leasing – When you lease a vehicle you don’t own the vehicle. You get to use it but must return it at the end of the lease unless you decide to buy it.
Buying – Up front payments when you’re purchasing a vehicle include the cash price or a any down payment, taxes, registration, and other fees.
Leasing – When you lease you don’t own the vehicle. You get to use it but must return it at the end of the lease unless you decide to buy it.
Buying – When you finance a vehicle purchase, loan payments are usually higher than lease payments because you’re paying off the entire purchase price of the vehicle, plus interest and other finance charges, taxes, and fees.
Leasing – When you lease a vehicle, payments are almost always lower than loan payments because you’re paying only for the vehicle’s depreciation during the lease term, plus interest charges (called rent charges) taxes, and fees.
Buying – After purchasing or financing a vehicle purchase you can sell or trade-in your vehicle at any time. If necessary, money from the sale can be used to pay off any loan balance.
Leasing – After leasing, if you end the lease early, early-termination charges can be almost as costly as sticking with the contract.
Buying – After purchasing a vehicle you’ll have to deal with selling or trading your car when you decide you want a different one.
Leasing – When you lease a vehicle, you can return it at lease-end, pay any end-of-lease costs, and walk away.
Buying – When you buy a vehicle, the value will depreciate over time but it’s cash value is yours to use as you like.
Leasing – When you lease the vehicle’s future value doesn’t affect you financially, but you also don’t gain any equity on the vehicle.
Buying – When you buy, you’re free to drive as many miles as you want. (High mileage will lower the vehicles trade-in or resale value.)
Leasing – Most leases limit the number of miles you drive. You’ll have to pay charges for exceeding your limits.
Excessive Wear & Tear
Buying – After a vehicle purchase you don’t have to worry about wear and tear, but it could lower the vehicles resale or trade-in value.
Leasing – Most leases hold you responsible for excessive wear and tear. You’ll have to pay extra charges for exceeding what is considered normal wear and tear.
End of Term
Buying – When you finance a vehicle, at the end of the loan term you have no further payments and you have built equity to help pay for your next vehicle.
Leasing – At the end of the lease term, you’ll have to finance the purchase of the car, or buy or lease another vehicle.
Buying – When you buy a vehicle it is yours to modify or customize as you like.
Leasing – When you lease a vehicle the lessor wants the vehicle returned in sellable condition. Any modifications or custom parts you add will need to be removed before you return the car. If there is any residual damage you will have to pay to get it fixed.