Buying a Vehicle
When you buy a vehicle, it’s yours for as long as you choose to keep it. Your vehicle can be used later as a trade-in for another new vehicle to lower the initial sticker price and reduce your monthly payments. When you buy new, you usually can’t get the vehicle without having a down payment or using your old vehicle as a trade-in. Then you’ll need to pay the taxes, registration, and other fees just to drive it home and call it yours.
The amount of your loan usually includes the value of the vehicle and interest all-rolled together to provide you with a monthly payment. These payments are typically higher than what you would pay for leasing a vehicle. Your new vehicle depreciates rapidly and whatever that value is you are stuck with it. You still pay on the vehicle even though the value has changed and your payments haven’t. Owning means you can drive your vehicle as much as you want, no restrictions on mileage, or worry about wear and tear. If you own it, it also means you can customize your vehicle and make modifications, but you do have to be concerned about voiding the warranty when you make modifications.
Leasing a Vehicle
Leasing may be a better way for some buyers. When you lease a vehicle, you’re committing to some specific terms of the lease. Typically, the leasing period is about three years. During that time, you are only paying for the value of the vehicle for the three years of the term, which lowers your monthly payments as opposed to what happens when you buy a vehicle. Now, with leasing you may still be required to have a down payment or security deposit. You may still need to pay for other fees that include sales tax and registration, but you won’t own the vehicle. You can use the vehicle until the end of your term, then you can decide whether you want to buy the vehicle or return it for another lease or purchase. Should you decide to end the lease early, you will probably need to pay an early termination penalty.
During your lease, you are given a specific number of miles that you can drive within a given year, but you can negotiate for a greater number of usage miles. If you exceed the mileage parameters, you will need to pay an overage fee for passing the mileage limits that were established. Additionally, should there be any damage to the leased vehicle that exceeds normal wear and, tear you will also be required to pay for the repairs.
The big advantage to leasing is that you can get a new vehicle every three years or by the terms of your lease agreement so you can enjoy the latest technologies, luxuries, and innovations. Plus, you’ll enjoy monthly fees that are lower than what you are likely to pay when you buy.
Find The Vehicle You Want at Mark Christopher Cadillac
Regardless of whether you lease or buy, there are advantages and disadvantages to each situation. You can begin making your decision when you contact us and ask about our leasing and buying options. Check with our Finance Team to see which plan will work the best for your needs.
