There are so many different types of financing options out there. That's why our financial wizards at Ray Price Ford wrote this comprehensive leasing vs buying guide for our customers in Mount Pocono, Tobyhanna, Scranton, Blakeslee and Pocono Pines, and the surrounding areas.
- Ownership
If you buy the vehicle, it's yours; you own it. On the other hand, if you lease the vehicle, you don't own it. Unless you end up buying it, you need to return it once the lease ends. It's up to you.
- Monthly Payments
In general, the monthly payments for a loan are much higher than the monthly payments for a lease. That's because, with a loan, you're paying off the entire price of the automobile.
- Initial Costs
When you buy, these include the down payment, any taxes, registration, and other miscellaneous fees. When you lease, this means the first month's payment, a refundable security deposit, the down payment, any taxes, registration, and other miscellaneous fees. It's about the same.
- Early Termination
Owning an automobile means that you can sell it or trade it in at any time-you could even set it on fire, if you want to. However, ending a lease early can be extremely expensive. Don't do it.
- Vehicle Return
Selling or trading your car can be a complicated process. But, if you're leasing, once the lease is over, returning your car is very simple. You just pay any obligatory costs and walk away.
- Projected Value
An automobile's value depreciates significantly over time. Consequently, there are both benefits and drawbacks to owning and leasing. When you own, this depreciation will affect you financially, but you can also liquidate the car for its cash value at any time. When you lease, its future value won't impact your finances, but you also can't take advantage of its equity should you need to.
- Mileage
If you buy, you can drive to the beach, you can drive to South America, you can drive to China, you can drive to the moon. If you lease, you'll have a mileage limit, often 15,000 miles per year.
- Routine Bumps & Bruises
Although wear and tear will lower a vehicle's trade-in or resale value, that's all you'll need to worry about if you own. Leasing is a whole different story. You'll be held responsible.
- End of Financing Term
Once you pay off a loan, you're set. You can even take advantage of the car's equity when you go to buy your next one. Once you finish a lease, it's time to finance another one.
- Accessories & Customization
Buy? Do with it what you please. Lease? You'd better check with them.
Reach Out to Us at Ray Price Ford if You'd Like More Info!
Whether you're interested in leasing vs buying a car, you've come to the right place. Our team of helpful customer representatives can answer any questions that you might have. If you live in Mount Pocono, Tobyhanna, Scranton, Blakeslee and Pocono Pines, we hope you each out to us today.
