Should I Buy or Lease?

When shopping for the car of your dreams, one of the questions you may encounter is whether you plan to lease or buy your next vehicle. Before you can decide, it is important to figure out your driving needs and budget and how they would be affected by leasing vs. buying. Each owning method has its own set of benefits, and one may be better for Cumberland drivers. Don Franklin Auto breaks down the differences and answers the question, “Should I buy or lease?” What’s the difference between lease and finance options? We have the details.

Benefits of Buying

• No Mileage Restrictions: If you plan on doing a lot of driving in and around Hayward, you may want to consider purchasing your vehicle. You won’t have to worry about mileage limits or charges for excess wear and tear.

• Total Ownership: Buying a vehicle means it’s yours completely. You can do whatever you want with the vehicle.

• Customization: Unlike with leasing, you are free to customize your vehicle any way that you want. Make performance modifications, change the color, or add accessories. The possibilities are endless.

• Ability to Sell: When you purchase the car, you can sell it any time that you want.

• Less Cost Over Time: Though buying a new car is more expensive in the initial period, it eventually becomes less costly the longer you have it. Also, the higher your credit score, the better your interest rate and terms.

Benefits of Leasing

• Lower Payments: Your monthly payments are less expensive when you decide to lease.

• Less Sales Tax: In most states, leasing a vehicle drastically lowers sales tax. In some areas, you only have to pay tax on the amount you put forth in the down payment and for the monthly payments.

• Trade-Ins: With leasing, you don’t have to worry about selling the car when you want something new. When the terms of your lease is up, all you have to do is bring it back to the dealership and select a new car to buy or lease.

• Great Coverage: Warranty coverage and maintenance is a breeze when leasing. You don’t have to worry about out-of-pocket expenses for covered components as long as you don’t go over the mileage limits.

• Options: When you lease, you have the opportunity to drive a new car more often. If driving a vehicle with the latest tech features is important to you, leasing is ideal.

• High Approval Rate: While you may be denied for a car loan, it is much easier to get approved for a lease. You can even get approved with bad credit or if you have yet to establish credit.

Learn More About Financing with Don Franklin Auto

Lease vs. buying. Which is right for you? Now that you know the difference between leasing and buying a car, it’s time to make a decision. If you are still unsure about your options, do not hesitate to reach out to the team at Don Franklin Auto. If you would like to expedite the financing process, you can even prequalify for credit! In addition to showing you the difference between a lease and buy and what is a deferment on a car loan, we can also answer your other financing questions. Learn more about the meaning of MSRP and how you can find your next ride that fits your budget.