Buying vs Leasing

 

When it comes time to get a new car, the first question you are going to ask yourself is, should you buy or lease your vehicle. There are certainly benefits to both, but knowing which one is the best for you could be a complicated process. Fortunately, we are here to make that decision a little easier, so that when that time comes, you'll be fully prepared. Here are the benefits of buying and leasing a vehicle.

What are the Benefits in Terms of Ownership?

When you lease a vehicle, you're paying for ownership of the vehicle through the time of the lease. Once the contract is completed, you must return the car to the dealership, though most dealerships will give you the option of purchasing the vehicle outright. When you buy a car and have completed all the terms of the contract, there is no further obligation. The car is yours.

What are the Benefits in Terms of Payments?

Monthly payments when you lease a car are going to be lower because you are only paying for the vehicle while you are renting. Buying a car means that you are paying for the full price of the vehicle with each payment that you make going to the equity of the vehicle. Monthly payments when you are buying a car tend to be a little bit higher.

When Would I Have to Maintain My Vehicle?

Most terms of leases tend to end before the warranty expires. During the terms of your lease, you will have to do regular maintenance, such as getting an oil change and a tire rotation. The good news is because you are leasing the vehicle costs should be minimal. When you own a vehicle, you have no lease obligations, which means you determine when and how you care for your car.

How Do I Deal with Normal Wear and Tear?

While you are leasing your vehicle, normal wear and tear is expected and is covered by the dealership. When you buy a vehicle, you make the call on when and how you deal with damage to your car.

What’s the Difference in Terms of Tax Savings?

There are many states where the tax calculation is based on the monthly payments you make for your car versus the full cost of the vehicle. If you drive the vehicle for your business, you might be able to deduct a portion of the payment. When you buy a vehicle tax on the full purchase of the car is due when you sign for it and can be rolled into your monthly payment.

What Happens at the End of the Term?

Leasing a car provides you with a ton of options. You are free to turn in the car, or you can buy it for a preset price. Purchasing a vehicle means that once you've completed the terms of your contract, the car is yours, or you can turn it in and buy or lease another vehicle.

Buying or Leasing a New Chrysler, Dodge, Jeep, or RAM in Culpeper VA

Here at Chrysler of Culpeper, we want to help put you in the car, truck, or SUV of your dreams! Our financial department will help you decide on whether you should buy or lease your new vehicle. Whether you pay on time, have missed a few payments in the past, or have bad credit, we can't wait to work with you to help put you in a brand-new car. If you want to go used, we have a vast inventory of used vehicles for you to check out! Stop by Chrysler of Culpeper to review all of your options today!