Buying Vs. Leasing Right for You

customer signing deal with salesperson at car dealership

Buying vs. Leasing: Which is Right For You?

Paying for a New Car at Naples CDJR

It’s no secret that new car prices continue to increase, especially as automakers fill them with high-tech features and quality materials. When buying a new car, shoppers have to decide between leasing vs. buying car pros and cons. At Naples Chrysler Dodge Jeep Ram, our goal is to make the car-buying process stress-free, so we want you to understand your lease vs. loan options.

Benefits of Buying

Buying a new car involves paying cash or acquiring a traditional car loan. The price you pay for the vehicle depends on your down payment or trade-in deducted from the sticker price. Today’s auto loans tend to have longer terms than loans from years past, so it’s common for people to pay for a new car over a long term of 72 or 84 months.

One benefit of buying a car is that you own the vehicle at the end of the loan. You can also sell or trade the auto before the loan is paid. With car loan payments, you do not have any mileage limits or wear-and-tear concerns. The car is yours without any limitation.

The problem with buying a car with a loan is the higher monthly payments, especially compared with lease payments. With a long-term loan, the warranty has usually expired, so you become responsible for maintenance costs and repairs.

Benefits of Leasing

To avoid the high monthly payments, many buyers decide leasing a vehicle is right for them. When you lease a car, you pay for a short term - usually 24 or 36 months. At the end of the lease term, you return the vehicle to the dealership and exchange it for another one.

Leases are short-term. So when leasing a car, you always have a new-car warranty with coverage for routine maintenance and repairs. On the flip side, leasing companies set mileage limits, often between 10,000 and 15,000. If you exceed the mileage limits, the leasing companies assess wear and tear charges and mileage fees. They do this because they set a residual value that decreases with additional mileage.

Along with the end of lease fees, leasing companies usually do not let drivers get out of their leases early. So, if you want a new car before your lease ends, you cannot sell the car. On the positive side, you don’t have to worry about trading in your vehicle, as you return it at the end of the lease.

Why Choose Naples Chrysler Dodge Jeep Ram

When shopping for a new car, truck, or SUV, we invite you to visit our website to see our inventory of beloved brands. With every new vehicle, we include the Naples CDJR Advantage that includes vehicle protection services and roadside assistance.

Our friendly finance team can help you choose the right loan or lease program for your budget, and you can speed up the process by completing our online finance application.