Auto Financing: Should I Lease or Buy a Car?

 

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Chula Vista Ford Explains the Difference Between Buying and Leasing a Car

Many drivers will agree that the one of the most challenging stages of the shopping process is deciding on automotive financing. Thankfully, shoppers like you from San Diego, El Cajon, and National City have the full support of our financial advisors here at Penske Ford Chula Vista. For your convenience, we have outlined the pros and cons of buying and leasing a car so you can decide on the option that works best for you.

Buying a Car

Advantages
  • In rare instances, some customers will purchase a model outright, but most car buyers will require an auto loan to cover the cost. While this may seem daunting, the benefit of financing a vehicle is that the model in question will be yours to keep once the loan is paid off. This will eliminate future costs and will ultimately save you more money in the long-run. Apply for financing online now!
  • When you buy a car, you are essentially claiming ownership. This means you not only have the freedom to drive and customize it to your liking but can sell or trade it at any time as well. This is because you are not bound by a contract to a dealer.
Disadvantages
  • To reduce the total cost of buying a vehicle, you are expected to pay a larger sum for a down payment. Depending on the duration of your auto loan, you will spend more each month too. In exchange, money going out of your pocket will cease in due time.
  • Keep in mind, any maintenance or repairs outside of warranty are your responsibility. Not to mention, the value of your vehicle will depreciate as soon as you leave the lot, so you may not see a large return when you eventually sell or trade it.

Leasing a Car

Advantages
  • Drivers who lease a vehicle can enjoy the latest models available because a contract typically lasts for two to four years at most. In other words, you can upgrade your ride with each new lease agreement. This route is preferable for drivers who are not yet sure which car, truck, or SUV they would like to own.
  • The cost of leasing a car is generally more affordable. In fact, statistics say that payments can be 30 to 60 percent lower than that of an auto loan. In some state, a tax break is even offered as an additional incentive. Thus, you can pay less for a more expensive mode of transportation.
Disadvantages
  • When you lease a car, the dealer remains the property holder. This means that you will have to agree to certain rules such as maintaining annual mileage limits, routine checkups, and more. Any damages you sustain will therefore incur extra fees at the end of your contract term.
  • If you choose to lease indefinitely, you will always be making payments. In this way, a lease may seem to save you more initially but may cost more in the grand scheme of things. It is for this reason that drivers often use a lease term as a trial period until they find a model they want to purchase.

Contact a Penske Ford Chula Vista Financial Advisor Today

Need more help deciding between buying and leasing a car? Not to worry. Our team is happy to lend you a hand through your automotive finances. You can write to us online or call us at 855-326-3632. If you prefer more direct assistance, feel free to make an appointment for a one-on-one consultation at our Chula Vista Ford dealership serving San Diego, El Cajon and National City. Whatever method you choose to reach out to us, you can count on our experts to see you through every stage of the process!

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