Leasing vs Financing A Car
Leasing vs Financing A Car
If you’re a customer near Wayne, MI, who is interested in taking home a car from your local dealership, you are probably considering whether leasing or financing is the right option for you. There are a number of advantages and disadvantages to leasing a car as well as a number of advantages and disadvantages to financing a car.
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When it comes to leasing a car, there are several advantages. If you’re a customer near Wayne, MI, who is interested in leasing a car, it’s important to know that monthly payments for a lease are usually cheaper than monthly payments when purchasing a car through financing. Also, the down payment is usually lower as well, while some leases don’t even require a down payment, so you will save money in the short term.
Another thing to note is that leases usually have shorter durations than car loans through financing, so leasing is ideal for customers who are looking to upgrade their car every few years—and those who are interested in having the latest technology and innovation. Plus, if you end up not liking the car you’re leasing, you will be able to switch it out at the end of the lease for something better. Ultimately, you won’t have to worry about long-term commitment when leasing a car.
- Lower monthly payments
- Shorter leasing contract
- Driving a new car every two or three years
- No real commitment in the long-term
Cons of Leasing A Car
Although there are many advantages to leasing a car, there are also some disadvantages. For starters, leasing means you don’t actually own the vehicle. This ultimately means you will be putting money into a vehicle that you don’t own—the monthly payments will have nothing to show at the end of the lease—and you will have to start all over again once the lease is up.
Additionally, many leases limit drivers to between 10,000 to 15,000 miles per year, so you will have to keep an eye on the odometer throughout the duration of the lease to ensure you don’t go over the limit. In the event that you do go over, you will likely have to pay additional fees, or you can purchase additional mileage upfront.
- Payments have nothing to show at the end of the lease
- No ownership benefits
- Limited mileage per year
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Pros of Financing a Car
If you’re interested in financing a car, there are many advantages to consider. Financing a car ultimately means you own it. Every monthly payment on a financing plan goes toward the end goal of fully owning that vehicle, so once it is paid off, you will be free of car loan payments and any resulting financial burdens. Once you own the vehicle, you won’t be losing money in the long-term because you won’t have to invest more money into another loan like you would when leasing.
Financing also means you can customize the vehicle as you please and drive it without worrying about going over the set mileage limitations of a lease. Finally, once you own the car, you will be able to consider hassle-free trade-in options at your local dealership if you ever do decide to upgrade your ride.
- Save money at the end of the loan contract
- Ownership benefits, including customizing or upgrades
- Trade-in options
Cons of Financing a Car
While financing a car can often be the best and most affordable option for most drivers, there are also some disadvantages to consider. First and foremost, financing a car usually means higher monthly payments than leasing, as well as a higher down payment, so it is less affordable in the short-term. Financing a car also means you will have more ownership responsibilities, including being responsible for routine maintenance, repairs and upgrades for years down the road. You won’t be able to simply drive the car and then upgrade to something newer and more exciting when the lease is up after a few years.
- Higher monthly payments and down payment
- Ownership responsibilities, including maintenance, repairs and upgrades
- More work to trade-in or sell the vehicle
- Won’t be able to easily switch your vehicle out for the latest model
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Why Come to Demmer Ford near Wayne, MI?
Jack Demmer Ford of Wayne, MI, is a local Ford dealership. We have a massive New Ford Inventory that features a selection of new Ford models, plus, we carry a selection of pre-owned cars, trucks and SUVs on our lot for more competitive prices. Customers can visit our top-notch Finance Center for dependable automotive financing and leasing as well as hassle-free trade-in services. If you’re in need of preventative maintenance or repairs on your current Ford model, stop by the Ford Service Center for high-end car care ASAP. Jack Demmer Ford of Wayne, MI, aims to provide every customer with stress-free car shopping, regardless of their situation or needs.
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