When you are looking to get a new vehicle, is it best to purchase or lease that new vehicle? Some people think leasing is the answer while others refuse to lease and will only purchase. The truth is, it solely depends on what your situation is, and what you are willing to sacrifice. Looking at the vehicle you want to acquire you need to know how you are going to use it and what kind of sacrifices are you willing to make.
Leasing a vehicle can be a great way to consistently drive a new vehicle. As most leases are only for three years, after that period you can step up into the newest model without fear of having payments from an auto loan. Another benefit of leasing a vehicle is that your monthly payments are typically less expensive than if you were to finance the vehicle. You don’t only have to pay the arrangement that you agree to according to the depreciation of how much you use the vehicle. One of the negative aspects is that you must limit your driving or risk paying a mileage overage fee. Lastly, down payments are typically less on leases than full out purchases.
On the other hand, getting a loan on a vehicle does not have the restrictions of what you can do to your car or how much you drive a lease does. If you plan on doing a lot of driving on the vehicle, then perhaps a loan would be the best way to go. With a loan, you often have a larger down payment and typically have a larger monthly car payment. On the positive side, you have a long-term investment with the vehicle as once it is paid off you still have the vehicle with the residual value of the vehicle.
For more information on the differences between leasing and buying, check out the information provided by the professionals at Performance Dodge and Ram. You can also contact them and they would be happy to discuss the differences and how it would affect your purchase.