Buying vs. Leasing: What to Consider When Planning for a New Car

April 7th, 2022 by

When the time comes to buy a new car, it is helpful to go into the dealership with a game plan. You may have your sights set on the perfect model, but feel overwhelmed when it comes to the financing process. Working with the right Jeep, Ram, and Dodge dealer in New York is step one if you want to enjoy a seamless buying experience.

An experienced financing specialist will be able to discuss your budget, lifestyle, and preferences to determine the right financing strategy. The biggest question drivers will ask themselves is whether they should buy or lease a new vehicle. If you’re torn between the two, keep reading for a look at the pros and cons of both options.

Perks to Leasing a New Vehicle

A car lease may make better sense if any of the following apply:

  • You aren’t ready to make a big commitment on a specific vehicle.
    • You may be in the process of testing out the type of Jeep, Dodge, Ram, or other vehicle and how it fits into your family and lifestyle. Opting for a lease allows you to fully explore a model for about two years, and once the lease is up you could buy it or switch to another vehicle you like better.
  • You prefer lower monthly payments.
    • Lease payments are generally lower than loan payments since they are based on the difference between the new price of the vehicle and the depreciated value of it at the end of the lease term.
  • You want to avoid a big down payment.
    • Many lease agreements allow you to drive off the lot with little-to-no money down. You will also avoid any taxes, titles, or dealer fees.
  • You want to minimize your repair and maintenance budget.
    • New vehicles usually won’t have too many maintenance and repair needs, plus your lease agreement may include routine maintenance at the dealership.

The big stipulation to be mindful of when leasing a vehicle is that you will not be able to customize the vehicle and you will need to stick to the set mileage limits.

Perks to Buying a New Vehicle

Buying a new car may be the right option for you under the following circumstances:
You want to customize the vehicle to your liking and drive it as much as you want.
As the owner of the new vehicle, you will be able to do whatever you want with it. You could add accessories, drive off the beaten path more, or even sell it if you want.
You want to build up equity.
As you make monthly payments on a loan, you will build up equity in the car. Once the loan is paid off you can ditch the monthly payments or use this equity to offset the cost of a newer vehicle.

Buy or Lease Your Next Jeep, Dodge, Chrysler, or Ram

If you’re in the market to buy or lease a new vehicle, find a trusted Dodge, Ram, or Jeep dealership in Long Island, New York. The finance team will be able to help you narrow down your options and take home your dream car, truck, or SUV.