Lease or Finance? Regardless, We Have a Vehicle for You

September 13th, 2016 by

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Choosing a new car is exciting, but it can be complicated if you are deciding whether leasing or financing is best for you. So, we are here to help you decide. Many of the factors that will help you decide depend on your budget, driving expectations, and personal preferences.

Budget

Money is a large factor that motivates people to lease or finance a car. Some people prefer the lower or no down payment when leasing a vehicle, in addition to what can be lower monthly payments.

Depending on the amount being financed, lease payments might be lower because rather than paying off the entire vehicle like one does when financing. Monthly lease payments are based on the difference between the MSRP and the “residual” balance, or what the car is worth when your lease term is up. This means you pay monthly payments based on the portion of the car value you “use”. However, this is why there is an annual mileage cap and why the car must be in near-perfect condition when it is returned, the manufacturer doesn’t want the car to be too overused and depreciate a lot of value during its lease.

However, financing a car isn’t always more expensive. Depending on the amount being financed, one might have lower monthly payments than leasing a car. If one doesn’t have to finance a large amount of money to own the car, monthly payments might not be too high. However, this depends on credit as well.

Driver Preferences

So leasing might ideal for different types of drivers or people with different needs. For example, if you need the car for work purposes that require a lot of driving, the annual mileage cap on a lease could result in expensive overage payments at the end of the lease.  But if you just need a car to get to a close commute and for routine driving and errands, a lease could be a good choice.

If you’re someone who doesn’t take excellent care of the interior or exterior of their car and you drive in tough conditions that might damage your vehicle leasing could also result in expensive repair costs at the end of the lease.

On the other hand, if you prefer driving a car that always has the newest technology and innovation, leasing could be a great option. When you lease a car, you are not stuck with it forever, so people that continuously lease cars are usually driving the most modern cars available.

But, if you like to keep a car as long as possible and run it till it’s dead financing is for you (duh!). Also, if you like to customize a car or truck and make it your own, than financing is best for you. With a lease you don’t have the liberty to alter the vehicle’s appearance or performance.

Whether you want to lease or finance, we have something for you at Hollywood Chrysler Jeep, check out our inventory here.