Should I Buy Or Lease A Car?

 
Not sure whether to buy or lease a car? Both options have pros and cons, so depending on your situation, one may be more suitable. In the following guide from Capitol Ford, we will help you weigh these paths, so you can make an informed decision.

Lease Vs. Finance A Car

So, should you buy or lease a car? Leasing a car near San Jose is similar to renting a car for a long-term contract period. During this contract, you’ll be locked into monthly payments for a specific amount of time. You won’t build equity as you would from outright buying the vehicle. You’ll be paying for the ability to use a car for a specific set of months and the mileage agreed upon between you and the dealership. When the car lease is up, you can trade your vehicle in and replace one leased vehicle with a new one, buy the vehicle, or end your lease.

Compare Leasing And Buying A Car: Pros

Pros Of Leasing:

• Lower Monthly Payments: You’ll have smaller payments in general when you decide to lease a car near Santa Clara.
• Worry-Free Maintenance: Many vehicles will come with a three-year lease. As a result, most repairs will be covered within the terms of an existing lease.
• No Worries About Resale: When you lease, you just return the car. If you exceed the agreed mileage or there’s wear and tear, you might have to pay some fees.
• Get a New Car Every Few Years: You can return your car every couple of years, so you’ll get the latest vehicles and newest tech every so often.

Pros Of Buying:

• Ownership: Once you finish your monthly payments, you will own the car outright. If you want to sell it off or trade it in, you can do so.
• Customize Your Vehicles: Leases have rules regarding what can be done with your Ford vehicle in San Jose. When you own the car, you won’t have to deal with that.
• No Restrictions: Never worry about mileage rules, wear and tear, and other issues. Repairs and other services are entirely at your discretion.

Compare Leasing And Buying A Car: Cons

Possible Cons Of Leasing:

• Mileage Requirements: If you exceed the agreed-upon mileage, you’ll end up paying some fees.
• Constant Monthly Payments: You will have to maintain those monthly payments to keep your car, and that will be a constant throughout the lease.

Possible Cons Of Buying:

• Higher Monthly Payments: Leasing a car means lower monthly payments for the same vehicle you might consider buying.
• Rapid Depreciation: New cars can lose between 15% and 50% of their total value in the first five years.
• Larger Down Payment: If you’re trying to get approved for a loan, you’ll have to consider making a larger down payment to do so. Leasing your vehicle will mean less chance of this occurring.

Finance Or Lease Your Next Car At Capitol Ford

After exploring the benefits and drawbacks of leasing vs. financing a car, what’s next? If you’ve made a decision, enjoy a No Brainer Price on your next ride, whether you’d like a brand-new or used model for sale near Sunnyvale! Feel free to call us at (408) 265-6000 to get the ball rolling or for more information. Our team is here to help you upgrade to your next car!