You’re on the precipice of getting behind the wheel of a new Chrysler, Dodge, Jeep®, or Ram vehicle. You’ve already picked out the kind you want and how you want it specified, but now you find yourself faced with a different kind of decision: buy or lease. Ultimately, the right choice between financing and leasing a vehicle depends on your needs and habits. Consider the following pros and cons of leasing and buying and make the choice that’s best for you.
If you want to upgrade into a new vehicle more regularly, leasing might be the best choice for you. When your lease expires, you have the option to finance the balance on the vehicle or return it to the dealership in favor of starting a new lease on a newer vehicle.
Leases are also beneficial if you’re on a tighter budget. With a lease, it’s more likely that you’ll have a lower monthly payment because of the way lease costs are calculated—basically, you’re paying the difference between the negotiated price and expected value at the end of the lease’s term. Some leases also require little or no money down, which is big for those that don’t have a lot of cash up front.
The biggest benefit to buying a car is that when your payment term is up, you own the car free-and-clear. This explains why buying a vehicle tends to require a down payment on the vehicle’s total value and higher monthly payments—you’re paying for it in full. By buying a vehicle, you won’t have to worry about a maximum mileage allowance or paying extra for any miles driven over that total as you would with a lease. Since the vehicle is yours, you can modify it as you please, whether that means adding new rims, changing the paint color, or upgrading the sound system.
There are a lot of factors that can determine whether it’s better to buy or lease, whether it’s how much money you have in your budget or the number of miles you expect to drive in a given year. To get the answer that’s right for you, talk to our finance experts at Greenway CDJR.