Leasing vs. Purchasing

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!

Leasing

CalculatorIf 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.

Purchasing

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!

Buying a Car Should Be Fun!

Approved car loan application formRyan Hotchkiss, Business Manager, fears that many people don’t look to finance a vehicle because they are afraid of embarrassment or rejection. “Buying a car should be fun,” he says, and “anyone can qualify.” Most dealerships advertise that they can finance anyone, or that everyone is approved, but most people are unsure of what this means or do not think that they will meet the correct qualifications. The truth – Ryan says, is that “anyone can qualify; however, this may come with stipulations.” This means that a buyer may have to put money down on the vehicle, go for a longer-term loan, higher interest rate or finance a less expensive vehicle. There are many great options available and we work with a variety of banks and credit unions in order to make financing work for each individual and situation.

Shop your car – not your credit. Each time you take a test drive – you should not be filling out a credit application. Each time your credit is run it shows as an inquiry on your credit report. While this does not necessarily hurt your score, too many inquiries can cause your score to drop and will also raise red flags when trying to apply for credit. Vehicles are an investment, not just a purchase.  Ryan says to “drive as many cars as possible, educate yourself and know what you are looking for. We can find you exactly what you are looking for, so shop around and compare.” Many dealerships advertise that they can offer you guaranteed financing and will urge you to fill out a credit application for your test drive. Ryan advises against this. Shop around – but buy from someone you trust. The financing process is the same anywhere you go, new or used, so find the car you want and then search for a dealer that you trust. Ryan hopes that we can be that dealership for you, and with an inventory of 400+ new and 150+ used cars with plenty of variety, we hope to help you find exactly what you need  – and finance it at the price you want!

Connect with Ryan on LinkedIn!

See Ryan’s Interview on Independence Television