Buying Vs Leasing
Buying Vs Leasing From Stevens Point Auto Center
When it comes to deciding between buying or leasing a new car, it can be an overwhelming decision. At Stevens Point Auto Center in Stevens Point, WI, we want to help you make an informed decision that suits your lifestyle and budget. Below is a comparison between leasing vs buying a car and what you need to know about both options.
Buying A New Car
Buying a new car means you either pay upfront or finance the vehicle through a loan. Once the loan is paid off, the car is fully yours.Who Owns It: When you finance or pay for a car with cash, you own the vehicle. You will be responsible for the maintenance, upkeep, and any repairs needed. Of course, you will have to meet the obligations the lender requires.
Up-front Costs: You will likely need to pay a down payment and make monthly payments based on your credit score and the lender’s requirements. The amount of the down payment is usually based on the lender’s requirements and your credit score.
Future Value: When you purchase a car, it becomes your asset. You can sell the vehicle in the future, and its value will depend on how well you maintain it. Regular maintenance by a factory-authorized facility will keep your car’s value long-term.
End of Payments: Once you’ve paid off your car loan, the car is yours, and you have complete ownership! The lending institution will send you a Lien Release as proof that the vehicle is completely paid off and all yours.
Leasing A New Car
When comparing leasing vs buying, leasing offers lower monthly payments and less commitment—but you don’t own the car.Who Owns It: When you lease a car, the financial institution you leased it through owns it. You’re essentially renting the car for a set period, which is why monthly lease payments are typically lower than buying a new car.
Up-front Costs: Leases generally don’t require a down payment, but you’ll likely need to pay the first month’s payment, a security deposit, an acquisition fee, and other taxes and fees. You can also make a down payment to reduce your monthly lease payments.
Future Value: Since you don’t own the car, you don’t have to worry about selling it in the future since that’s the financial institution’s job. You will, however, have mileage limits and wear and tear guidelines to follow, and exceeding them could cost extra money when you return the vehicle.
End of Payments: You’ll need to return the car to the dealership at the end of your lease term. However, you can buy the vehicle during your lease or at the end of it or trade it in for a new one.
Best Cars to Lease: The best cars to lease are those with the best book value after the term of the lease. Since they depreciate less, you pay less.
Which is Right For You: Leasing vs Buying?
At Stevens Point Auto Center, we offer various car leasing options to help you decide between leasing vs buying a new car. If you’re thinking about buying a new car, our team can help you navigate the car buying experience and make it as stress-free as possible.
Prefer the flexibility of leasing? We can walk you through buying vs leasing, explain your lease payment options, and help you find the best cars to lease for long-term use.Whether you're leaning toward leasing vs buying, we’ll help you find the right fit for your lifestyle and budget at Stevens Point Auto Center!