Auto Lease Vs Loan: What’s Better for Me?

I Found the Perfect Car…What Are My Options?

What happens after you find the ultimate vehicle? It’s time for financing, which means considering the leasing vs. buying a car pros and cons. After all, both these systems will help you command your new ride—but the way they work (and for how long) varies immensely. So, join us today as we take a closer look at the age-old question: Should you lease vs. buy a car? Also, stop by the Wood Motor Chrysler Dodge Jeep RAM Carthage finance center in Carthage, MO, to further explore your options.

Keeping Up with the New: Why Lease

Want a finance plan that allows you to continuously drive the newest vehicles and keep up with modern tech and powertrains? Then consider a lease, which works like a long-term rental. You’ll start by making a down payment and a series of monthly payments (which are usually lower than a loan for the same car) for the duration of a term, which typically lasts 12-36 months. Once your contract ends, you get a few options—buy the car you just leased, lease another vehicle, re-lease the ride, or simply return the cruiser. If you keep up with frequently leasing new cars, you can constantly drive something new and different, and you’re even allowed to switch from vehicles like a Dodge Durango to a Challenger. Plus, since you return the vehicles before it’s time for most expensive maintenance, it’s easy to save money in a short-term sense compared to a loan.

However, despite the perks of a lease, keep in mind you’ll need to stick with a mileage allowance, which means you can’t realistically make constant road trips—but these limits are usually easy to follow if you mostly commute with the occasional adventure. Also, since you’ll need to return your ride, you can’t make any permanent changes, like getting a paint job or remapping your ECU.

I Want to Keep My Ride: Why Get a Loan

In contrast to a lease, a loan lets you make a series of payments until you fully purchase your vehicle—after which, it’s fully yours. Since you now own the ride, you're free to drive any distance you please without a penalty or fine. Plus, you can also make permanent modifications, like tuning your engine or installing aftermarket parts like spoilers. Want to sell your car and pocket the money? Again, it’s permissible since you own the vehicle.

Keep in mind that a few fees with a loan are higher than a lease, like a down payment and monthly payments. Plus, you’ll also need to pay for long-term maintenance to keep your ride in peak condition. However, many of these cons are offset by the savings you’ll get from only paying for the insurance you think you’ll need, not needing to continue most payments after your term ends, and being able to see your car at any moment.

Find the Right Car to Finance in Carthage

Ready to drive home in the vehicle of your dreams? Stop by the Wood Motor Chrysler Dodge Jeep RAM finance center and begin the lease and loan process. While you’re here, we’ll assist in any way possible, whether it’s answering your finance questions or helping you find the right payment plan based on your unique needs and situation—it’s only the start of how we prioritize your needs as your local Carthage service center.