Should I Buy or Lease?
When it’s time to acquire a new vehicle, did you know you have options? At Betten Baker Allegan, we find that some shoppers aren’t aware that they can lease a vehicle and, for some, it’s a better option than going with traditional financing. Take a look at the difference between leasing and financing with Betten Baker Allegan, or contact our finance department for assistance in deciding which is the right choice for you and the way you drive in Ostego.
Leasing vs. Buying: Ownership
The biggest difference between leasing and buying is in who retains ownership of the vehicle:
- When you buy a vehicle (or finance its full cost), you are the owner of the vehicle and there are no limitations to how you customize it, how many miles you put on it, or how long you keep the vehicle. Your monthly payments will build equity, which you can make back when you sell or trade the vehicle.
- When you lease, the dealership retains ownership of the vehicle. You’re essentially doing a long-term rental for three to five years. That means you have to keep the vehicle as close to factory condition as possible. However, it’s easier to do so because it will be under warranty the entire time. That will cover most of the vehicle maintenance costs. When your lease is due, you simply return the vehicle to Betten Baker Allegan. You don’t have to worry about selling or trading.
Leasing vs. Buying: Mileage & Restrictions
- Financed vehicles aren’t under any restrictions from the dealership. They’re ideal for drivers who enjoy long road trips out of Fennville.
- Leased vehicles will have mileage and other restrictions that, if you don’t adhere to them, will be subject to fines. If most of your driving is the same commute every day, a lease is a great choice.
Leasing vs. Buying: Financial Factors
- Monthly lease payments are usually lower than financed payments, since you’re only financing the vehicle for the term of the lease. Your down payment and taxes will also be lower. You also don’t have to consider the money you might spend on repairs as the vehicle ages. You can keep your vehicle for as long as you like, and you can refinance at any time to get a lower monthly payment.
- Monthly finance payments, along with down payments and taxes, are usually a bit higher because your loan is for the full amount of the vehicle. But when you pay off the loan, you won’t have any payments at all. In the long run, this costs less than leasing for the same amount of time. Your payments will remain the same through the term of your lease, and returning the lease early might result in additional fees.
Find Your New Vehicle at Betten Baker Allegan
Whether you choose to lease or buy your next vehicle, choose Betten Baker Allegan to help you through the process. No matter which you choose, apply for financing with us, and we’ll do the work to get the best available auto loan rate that will save you money!