At Greenway Dodge Chrysler Jeep, many of our customers ask us, “Should I lease or buy?” It sounds like a tough decision, but it doesn't have to be complicated. The following is a brief overview of some benefits of each choice. Once you have the facts, let us help make the right choice for you and your family.
LEASING
In a lease, you do not purchase an automobile. You contract to use it for the first, and best, period of its life.
Less Cash Up Front - When comparing a "lease vs buy", one of the biggest advantages of a lease is that it does not usually require a substantial down payment.
Lower Monthly Payment - If the finance period is the same, your monthly payments will be lower when leasing (vs. traditional financing) because your payments will be based on the vehicle's estimated depreciation. (You are contracting to use a portion of the car's value, rather than buying the entire car).
A New Car More Often - Your taste and preference may change, and a short-term lease makes it easy to drive a new car more frequently. Additionally, you may have needs for a larger or smaller car in a few years, and a lease makes it easy to plan for such changes.
Tax Advantage for Business Use - People who use a lease car for business may find larger tax deductions with leasing than with buying a vehicle. Check with your tax advisor.
BUYING
When deciding whether to buy or lease, a key thing to consider is how long you plan to keep the vehicle. If you typically keep your vehicle for five to ten years, then traditional financing may be your best option.
Pride of Ownership & Equity - Ownership can instill a sense of pride. It can also build equity. Payment by payment, an owner's equity may increase.
No Restrictions on Mileage - This is important to consider if you drive more than 15,000 to 20,000 miles per year.
Make Changes to Car's Appearance - You can alter the interior or exterior to suit your taste (though your choices may affect the resale value). Remember though, keeping your car’s general appearance in top shape will help maintain it’s value over time.
Keeps Things Simple- Unlike a lease option, buying has fewer guidelines or requirements to keep track of over the duration of your ownership.
