When it comes to buying or leasing a car the options can be confusing. With the intent to best help you make an informed decision, Pines Ford has provided some information we hope you find it informative and useful.
Buying Vs. Leasing Vehicle
When you buy a new or used vehicle, you pay for its entire cost. Alternatively, when you lease a new or used car, you only pay for a portion of the vehicle's cost for the duration of the time you are driving it.
Both options have their advantages and will depend on your needs. Affordability is one of the major factors, so make sure to review the interest rates from banks along with the residuals from the lease companies prior to making your final your decision.
Buying a Vehicle
Whether you buy a car out right with cash or finance it through monthly payments, the vehicle becomes yours the moment you are approved and sign the documents. With financing, you'll have to meet the obligations required by the lender, such as a down payment amount and timely monthly payments. In case the payments aren’t met, they have the right to repossess it.
Up-front CostsIf you're financing it, the bank will probably request a down payment. You can also trade-in another vehicle and use any equity towards your down payment. The amount of the down payment is usually based on the lender's requirements and your credit score.
Future Value
Your vehicle will be worth whatever you can sell it for in the future, which will depend on how well you maintain it. To avoid any issues in the future, you can protect your investment with regular scheduled maintenance by a factory-authorized facility!
End of Payments
Once you've paid off what you owe on your contract, you’re done - the vehicle is 100% yours! The lending institution will then send you a Lien Release as proof that the vehicle is completely paid off and belongs to you.
Leasing a Vehicle
You do not own the car when you lease. You're paying for the use of the vehicle, but the finance institution that you leased it through actually owns it. This is usually why you pay less per month in a lease than if you were to buy the car.
Up-front Costs
Leases often do not require any type of a down payment. All you usually have to pay is the first month's payment, a security deposit, the acquisition fee and other fees and taxes. But, as with a purchase, if you want to lower your monthly payments you can always pay more upfront.
Future Value
In most leases, you don't end up owning it so you don't end up selling it. That's the financial institution's job. Although you may have mileage limits and wear and tear guidelines that, if you exceed them, could cost you extra money when you turn your vehicle back in.
End of Payments
Most people return the vehicle at the end of the lease term. But some like to purchase it during their lease or at the end. Others like to trade it in before their lease is over. Just ask us about these different options before signing any paperwork and we'll make sure you have your lease set up the way you want it
Best Cars to Lease
When it comes to buying and leasing, there’s no one-size-fits-all answer. Consumers need to carefully consider all of the pro, cons, and costs involved and determine which best fits their situation. Look at your budget and be honest about your mileage needs, lifestyle, and credit history before you make the leap. For the latest tips and deals, be sure to visit our financing guide.
The best cars to lease are those with the best book value at the end of the lease term. In other words, some vehicles depreciate less than others, so make sure to review the lease ratings to see which cars retain the best value!
If you're wondering what kind of deals you can get with leasing vs. buying, check out our lease deals and purchase deals pages.
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