Leasing vs Buying

What Are The Leasing vs Buying Advantages

After you take a test drive and choose a vehicle you want at Serra Chrysler Dodge Jeep Ram Traverse City, meet with our finance team to figure out how to make it your ride. You can discover your finance options for buying or leasing with Chrysler Capital and get a low APR based on your credit. Any way you look at it, we’ve got you covered.

Why Lease Instead of Buying?

Leasing good news is as follows, but not limited to:

  1. Lower monthly payments due to only paying to use the car for a set period, such as two or three years.
  2. You don’t have to worry about the value depreciating to less than what you owe in payments.

At the end of your contract, you can:

  1. Walk away without having to worry about selling.
  2. You can extend the lease for a longer period.
  3. Buy the vehicle.
  4. You can also sign up for a new lease.
  5. You can upgrade the vehicle, which allows you to put a new ride in your garage every few years.

Flip Side

As for disadvantages, you don’t own what you’re paying for unless you buy it, you cannot add any customization, and you are limited to the number of miles and where you can drive. Exceeding the limits can cost you, as is having too much wear and tear when you turn your car in. Ending the lease early saddles you with early termination charges that can cost as much as continuing the contract.

Why Lease Instead of Buying?

When you buy, the good news is as follows:

  • You own it outright after you complete the monthly payments from the bank (you get the pink slip).
  • After paying off the bank loan, you can reduce your insurance coverage for comprehensive and collision coverage (depending on the State you live in).
  • You can put as many miles on it without restrictions.
  • You can customize it with aftermarket accessories or a new paint job.
  • There are no mileage restrictions and you can take it anywhere you want, such as across the border to Canada or Mexico.
  • You can sell it for extra money or trade it in at any time when you want to apply the value to the purchase price of another vehicle.

    • Flip Side

    On the minus side, buying typically costs more upfront as you must pay either the total cash price or a down payment, plus registration, taxes, and other fees. Because you’re responsible for the entire purchase cost, your monthly payments are typically higher than the ones for leasing. In the meantime, your vehicle continues to depreciate. If you bought a new model, it may be worth less than the amount you owe in loan payments, especially within the first few years, which has the fastest depreciation.

    How to Decide?

    Whether to buy or lease depends on your budget, how you drive, and what you’re looking for in a vehicle. Your best bet is to talk with one of our sales and finance team members, who can help you discover which option is just right for you.

    Come to Serra Chrysler Dodge Jeep Ram Traverse City and find out how our commitment to customer satisfaction brings our customers back for their next vehicle. We have it all here for you today, no matter what fuel efficiency, safety features, or financing options.