Leasing vs Buying

There’s always the discussion of finance options while you’re looking for your new daily driver or family car. For most drivers, that starting point is the decision between leasing or buying. Which one is right for you?

The finance center at Feldman Chevrolet of New Hudson wanted to help drivers in the Detroit and Westland, MI, areas figure out which is the better payment plan for them. So, we put together this comprehensive guide to display the benefits and drawbacks of leasing vs. buying your new car.

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What Leasing Can Do for You

When you lease a car, you and the dealership will decide the number of years you’ll get to drive the car before returning it. Average lease terms are two to three years in length, but some can last up to five years. You’ll also have monthly payments until you give the car back to the dealership at the end of your lease period.

Pros:

• Generally, monthly payments are much lower than if you were to buy the same car. Instead of paying the full price, all you’re doing is covering the car’s depreciation while you have it, caused by the age, mileage, and wear.
• You don’t need to think about reselling the car when you’re finished with it or spending money on high-mileage repairs years into the future, either. You can just continue to return your leased vehicle when the time period is up and sign a new lease in the most up-to-date version of your favorite model.
• Dealers like to have an idea of the condition of their vehicles out on a lease, so they might include maintenance and service in your agreement.

Cons:

• There are some rules that are an absolute must to avoid spending more than you want to on your lease. The car has to be in good condition, which means no damage, excessive wear, or customizations.
• You’ll also agree to a certain number of miles driven on a yearly basis. If you’re the never-ending driver who likes to go on long road trips, leasing may not be the best option for you—more miles than your lease term allows means a financial penalty.

The Power of Buying

When you decide to buy a new car, you can drive it for years to come—because it’s all yours. Many drivers will take out a loan in the same way that you would to buy a house. This means that you’ll put down a down payment which is followed by monthly payments for a few years. Once you’ve finished those payments, you’re done.

Pros:

• Unlike continuously leasing different cars for years, you won’t have monthly payments forever. Most drivers often pay off the entire car in a few short years and then the car is 100 percent yours.
• You also get to decide when you pay by negotiating loan terms with your dealership to fit your financial situation best. If you need smaller installments and more than a couple of years to pay your new car off, it shouldn’t be a problem.
• How exciting is it that you can do whatever you want with the car? It’s yours, so no one’s stopping you from painting it, taking it in circles around the continental United States, or tacking on accessories.

Cons:

• Considering that you’re paying to own the vehicle for an indefinite amount of time, your payments are going to be higher than someone who leases the same model.
• Buying is a long-term commitment that includes repair costs for as many years as you want to drive the car.
• Say you want to sell it in the future; you’ll probably have the car for years, so some of today’s features might become outdated.

Learn More at Feldman Chevrolet of New Hudson

We hope that our guide will assist in your decision between leasing vs. buying. Regardless of your choice, you’ll have a great, up-to-date car to drive around the Detroit and Westland, MI, areas.

Take a moment to browse our inventory at Feldman Chevrolet of New Hudson. When you find a car that interests you, contact our dealership to schedule a test drive today!