Buying or leasing…which option is best for you?
Paying for a new vehicle is one of the largest expenses an individual or family will incur, other than purchasing a new home. If the prospect of saving up to pay cash for the purchase up front or trying to secure an auto loan is daunting, you may want to consider leasing a vehicle.
A typical car lease payment can be up to 60% lower than your monthly payments would be if you were purchasing the same vehicle and financing it with a traditional personal auto loan. The warranty is also a huge plus: it can be extremely frustrating when your newly purchased vehicle has a major mechanical problem shortly after the warranty runs out and you don’t have comprehensive coverage.
Here are a few other pros of leasing a vehicle:
*Excitement of driving a new car every two to three years
*You are always protected by a warranty
*No need to worry about selling your trade-in – simply drop off the vehicle at the dealership
*You can get the latest in advanced safety and technology features for your vehicle
*Depending on where you live, significant tax savings may be available when you lease
Here are a few things to consider before you lease a vehicle:
*Mileage restrictions – Nearly every lease has mileage restrictions built into the contract, generally allowing 10,000 to 12,000 miles a year. Excess mileage charges can get expensive.
*Excess Wear Fees – You will be required to return the vehicle in nearly its original condition. What is and is not allowed will be spelled out in the contract.
*No equity – Because of how leases are structured, you will have no equity in the vehicle when you return it. You will have nothing to use as a down payment if you choose to purchase your next vehicle.
Consumers should look at all the costs and benefits of each choice and align them with their needs and budget. We are here to guide you through that process. Give us a call today and explore your options or click this link for available leases.
Peterson Dodge Chrysler Jeep Ram
5801 East Gate Blvd