When it comes to deciding between buying or leasing a 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 and buying a car and what you need to know about both options.
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.
Who Owns It: When you lease a car, the financial institution you leased it through owns it. Therefore, you are paying for using the vehicle during the lease term. This is usually why you pay less per month for a lease than if you were to buy the 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
At Stevens Point Auto Center, we offer various car leasing options to help you find the best car for your lifestyle and budget. Our team can help you navigate the car buying experience and make it as stress-free as possible. Or, if you think leasing is the best option for you, contact us today to learn more about our lease payments and the best cars to lease for long-term use.