Lease vs Buying A Car
Many looking for a car come across an age old question, should I lease a car or buy it? Well here at Rosen Ford we are here to help you make this tough decision. At Rosen Ford we pride ourselves on helping customers in the Madison area find the car of their dreams, whether they are leasing or buying. Allow us to explain the pros and cons of leasing or buying before you make your next big car decision.
Benefits Of Leasing A Car
At first glance, leasing a car sounds like the perfect deal when searching for a car. Monthly payments are usually lower than buying a car because you’re not paying back the initial price of the car. Instead, you’re just borrowing and repaying the difference between the car’s value when new and the car’s residual, plus finance charges.
Other benefits include driving the car during its prime, always driving a late-model vehicle that’s covered by the manufacturer’s warranty, which may include free oil changes and other scheduled maintenance, predictable monthly payments, getting a higher-priced, better-equipped vehicle you otherwise wouldn’t be able to purchase, and after the lease ends you simply drop it off at the dealership.
Disadvantages To Leasing A Car
Drawbacks, however, include costing you more by leasing than simply buying it outright, monthly payments can go on for a long time if you keep leasing a car, lease contracts can limit amount of miles you are able to drive without having to pay for excess mileage, you must maintain the vehicle in good condition or pay fine, early termination fees and penalties can cost you thousands if you don’t like the car or can’t make your monthly payments, and you still need to pay for expendable items such as tires.
Benefits Of Buying A Car
Instead of leasing, some prefer just buying the car outright. While this choice isn’t financially possible for everyone, it may end up saving you more in the end, even if you pay a little more upfront.
Benefits include actually owning the car and doing whatever you would like with it, you can sell or trade-in your vehicle at any time, customize it, drive as many miles as you would like without additional charges, at the end of a possible loan term when purchasing your car you have no further payments and have built equity towards your next car.
Disadvantages To Buying A Car
Not everyone can buy a car upfront or afford the loan payments, which at first can be more than lease payments since you are paying for the vehicle’s initial price. Other disadvantages include having your car depreciate in value after leaving the lot, wear and tear is on you and can affect future reselling value, and you have to decide how to sell or trade-in your car on your own.
Should I Buy Or Lease My Next Car?
Depending on your financial and personal situation, buying or leasing a car is up to you and what fits best with your lifestyle. If you can afford to buy then you can, but if leasing is more your style then you can do that, too. Buying or leasing a car is really all up to you, but research on your car beforehand is always a must. If you’re still unsure, contact our finance department, and we’ll help you determine the best payment plan for you.
Lease or Buy A Ford In Belleville
For more information on how to lease or buy a quality Ford, other popular used or new Ford inventory, or how you can get behind the wheel of a reliable Ford, contact us at Rosen Ford Belleville today!