If you’re in the market for a new car, you might be overwhelmed by car financing information. While some people recommend buying your new vehicle, others swear by the flexibility of leasing. So, when does it make sense to lease over buying? Let’s go through the basics, so you can make the best decision for your needs.
Leasing vs. Buying
First, what are the main differences between leasing vs. buying? Buying a vehicle is a long-term solution. Generally, you’ll need to spend a little more on your down payment and monthly fees. But after years of paying off your loan, the car is yours to own. Leasing a vehicle is a short-term option. Typically, your contract will last two or three years – which means your car is often under warranty the whole time. At the end of your contract, simply turn the car into the dealership. This low-stress solution is a great option if you need a vehicle for a shorter period of time.
If you feel like a car loan is too big of a commitment for your needs, you might be a good candidate for a car lease. See if any of these scenarios sound familiar:
- Short-Term Stay: Moving somewhere for college or a short-term work stay? Leasing a vehicle might be an easier option than dealing with the resale issues of traditional car financing.
- Luxury Shopping: Want to experience luxury without breaking the bank? Check out the promotions on a luxury car lease. You’ll typically save quite a bit, especially with a trade-in.
- Work Vehicles: Need a car for your business? A leased vehicle is much easier to work into your expenses from an accounting perspective.
- Upgrade Potential: Get bored with cars easily? You can turn in your leased vehicle after a few years and explore the latest models with the latest technology.
Find Your New Car Today
Ready to find your next vehicle? Contact us at Bowman Chevy in Clarkston, near Waterford and Detroit, and we’ll help you find just the right model for your budget and lifestyle. We can help you take a test drive, set up financing, and even learn what to do after buying a car. Stop by the dealership today!
As you shop around for your next vehicle, you may be debating the merits of leasing vs. buying a new car. However, at Bowman Chevy, we strive to make the car buying process as quick and easy as possible. If you’re considering leasing a vehicle around Waterford, dive into our leasing guide to learn more about the process and whether it is a good option for you. Then get in touch with our financing department to set up a personalized payment plan that meets your needs and budget.
What is a Lease?
Leasing is an affordable short-term version of financing. Leasing is often compared to a long-term car rental, but it’s different from renting. When leasing a vehicle, the lessee actually finances the vehicle for the value of the car over predetermined amount time, as opposed to the total value itself.
What are the Benefits of Leasing?
There are many benefits to leasing a vehicle, but perhaps the biggest draw is the prospect of driving a new car every three-or-more years. Another benefit is the cost of monthly payments. Lease payments are generally lower than financing payments, since lease payments cover the cost of a lessee’s designated time with the vehicle, rather than paying for the overall cost in the case of financing. Additionally, maintenance costs on a lease are often under warranty, so there are no added service charges should you need a tune-up.
Should I Lease my Vehicle?
This is often the toughest question to ask yourself when car shopping, but it really depends on your needs and preferences. Should you need assistance with calculating possible monthly payments, or have any other questions about leasing, you can always contact our financing department and speak to one of our experts.
Lease Your Vehicle at Bowman Chevy
If you’ve decided to lease, or are in search of your next new vehicle, choose Bowman Chevy in Clarkston! Enjoy an amazing new Chevy vehicle at an affordable price. We look forward to helping you find the perfect car for the perfect price.
If you’re shopping for a vehicle, you may wonder about the benefits of leasing vs. purchasing. Which choice is the right one for you? There are many factors that could influence your decision. Keep reading as we explore the pros and cons—then get in touch with the expert team at Bowman Chevrolet to get a vehicle quote on the car that’s best for you!
If you like having a new automobile and enjoying the latest features as they become available, leasing may be a good option for you. One of the key differences is that you only pay for the depreciation in value that will occur during the lease. When you purchase a car, you’re financing the total cost of the vehicle. As a result, lessees will generally have a lower monthly payment than those who finance a vehicle. At the conclusion of a lease term, you return the vehicle to the dealer and have no more responsibility. You are free to lease the new model of your choice.
The following are some of the benefits of leasing an automobile versus buying it:
- Pay lower monthly payments.
- Enjoy the very latest automotive amenities.
- Experience a brand-new vehicle every few years.
- Drivers have warranty coverage for the duration of the lease agreement.
There are also some drawbacks to leasing a vehicle:
- If your mileage limit is exceeded, you must pay mileage overage penalties.
- No equity accrues from your payments, since you are essentially renting the vehicle.
- You can’t customize or alter the car in any permanent way. It must be returned to the dealer in original condition, aside from normal wear and tear.
- At the end of your lease, you have no trade-in or resale options toward the lease of your next vehicle. You must come up with a new down payment.
When you finance a vehicle, you own it fully once you’ve finish making the required payments. If you want the benefits that come with outright ownership, financing is likely the best choice for you.
The following are some of the perks of financing a vehicle:
- You’ll gain equity as you pay off the loan.
- Enjoy total freedom to customize the vehicle.
- You are not restricted in how many miles you can travel.
- You have resale and trade-in options when you choose to get a different automobile.
Here are some of the drawbacks of financing:
- A larger down payment is required.
- Due to larger monthly payments, you may have to extend the number of loan years to get a payment plan that fits your budget.
- Market changes can affect the value of your model over time, unlike a lease.
Let’s Get You on the Road
Visit the team at Bowman Chevrolet or contact us today to determine whether leasing or financing is the best option for you. You can also browse our vast inventory of high-quality models. Once you’ve found the vehicle you want, we’ll help you secure financing terms that fit into your budget. We look forward to working with you!