Buying VS Leasing
Should I Lease or Buy a Car?
When shopping for a new car, truck, or SUV, drivers in Rice Lake and beyond have many different decisions to make. Once you have decided on a vehicle that checks all of the boxes on your wishlist and falls within your budget, there is another big choice to consider. You may be wondering what’s better – leasing or buying a car. At Don Johnson's Hayward Motors, we can help you determine when to lease a car vs. buy based on your driving needs and budget.
Is Leasing Right for You?
While financing a vehicle is typically more popular among drivers in the Hayward area, regardless of their credit, many are discovering that leasing offers a wide range of benefits worth considering. What exactly is leasing? When you lease, rather than paying for the entire vehicle, you end up paying for what you actually use. Your monthly payments, which are typically more affordable than they would be with traditional financing, are determined based on the estimated depreciation of your vehicle in addition to the cost of borrowing. Here are just a few additional benefits of leasing:
- Leasing is less expensive up front: In most cases, it does not cost as much money up front to lease a vehicle.
- Less worry about the potential for negative equity: There is significantly less risk that your car will decline in value so much so that it is worth less than the projected residual value.
- Warranty coverage peace of mind: You don’t have to worry about costly out-of-pocket expenses when you lease. Your car will likely be covered under a factory warranty for the duration of the lease.
- Enjoy more affordable payments and shorter terms: Because your monthly payments are lower, features you may not have been able to afford before could now be within reach.
Is Financing Right for You?
While leasing may be the more affordable option for some drivers in the Cumberland area, financing has its own set of advantages. Drivers have more freedom when it comes to creating the car of their dreams as well as the ability to drive without limits.
- There are no mileage limits with financing: If you do a lot of traveling or you have a long commute to the office, financing may be your best choice. When you lease, you are bound by mileage restrictions. Go over those limits, and you will be charged a penalty.
- Customize your ride: If you plan on making any modifications to your vehicle, such as upgrading the sound system or changing the color, you should finance the vehicle. Most leases do not allow you to alter the vehicle in any way.
- Sell your car at any time: If you decide that it’s time for a different vehicle, you have the freedom to sell your car when you want to.
- Financing becomes more affordable over time: Once your vehicle is paid off, it is yours and you no longer have to worry about monthly payments.
Contact Don Johnson's Hayward Motors to Discuss Buying and Leasing
If you have additional questions, such as should I lease vs. buy a truck, Don Johnson's Hayward Motors will be happy to help you explore your options. Contact us today for more information or to set up a test drive. We can’t wait to help you find a car you will love for many years to come.