When you're considering buying a new vehicle, you're going to explore all of your options. Many people jump back and forth between buying and leasing. If you're interested in leasing or financing a vehicle, visit any of the dealerships at Elhart Auto Group today! We serve drivers in Holland, Michigan with an extensive inventory of cars, trucks, and SUVs for sale. When you're comparing buying versus leasing, it's imperative that you understand your situation. If you can understand why type of driver you are, then you'll know which option better suits your lifestyle. Take our quick quiz below and see which option works best for you!
Pros and Cons of Leasing
If you know that you like to upgrade your car every couple of years, then leasing might be a better option. People who live and work in different states prefer leasing as well. Leasing is a great deal because there is less commitment involved. Some people are more attracted to leasing options because they know that they don't have to commit to the vehicle. However, there are pros and cons to both options. If you lease a vehicle, then you're going to have it for a shorter amount of time. You might not have to pay a large amount of money every month, but you most likely have to pay a deposit and any dealer fees. The biggest drawback with leasing is the mileage requirements. When you lease a vehicle, the dealer will request that the model only has a specific amount of miles on it when you return it at the end of your lease. Usually, the dealer will charge anywhere from .15 cents and upwards for every mile that it is over. If you go over your miles significantly, then your lease can cost a pretty penny.
Financing a Vehicle in Holland, MI
As far as financing is concerned, there are no mileage requirements. However, you will have to make a payment on a specific schedule, and it will likely be higher than that of a lease. You may or may not provide a down payment depending on how your credit history appears. Adjusting the monthly payment and avoiding an "upside down" loan balance can be done with a down payment. Many people are unaware of what being "upside down" means. Let's say that you have poor credit and someone provides you a loan. If you get a loan payment at a higher rate and decide to trade your car in later, your car's value might be far less than the pay off amount because of the interest accrued or if the car was overpriced when you financed it. It's important to understand the value of a vehicle before buying and to assess how that vehicle's value will depreciate after you make your purchase. It's also important to be aware of credit scores and the rates given. Financing is a great option if you know that you're planning on a long-term commitment and are comfortable making payments for an extended period.
Still Unsure? We've Got Some Answers!
You can contact our experts when you're unsure of what you would like to do. We recommend that you schedule a test drive with our experts and explore your options. We can explore the new lineup of cars, trucks, and SUVs at any of our locations and see which vehicle seems like the right fit. Our finance department can also sit down with you and discuss your options. We will make sure that you make the right choice! The best thing you can do when you are deciding to purchase or lease a vehicle is to do your homework and do business with honest dealerships like the ones at Elhart Auto Group! Nothing is a secret here.
You're more likely to buy
- When you lease a car, you are typically capped at 15,000 miles a year. Additional mileage can cost you up to 35 cents per mile. And that can really add up.
- If you like to personalize a car, this investment can be lost on a leased car.
- If you like the idea of ownership, you are less likely to be happy with the lease option.
- If you like the feeling of accomplishment that paying off a large purchase brings and should consider that when you lease a car, the payment ends only when you return the car.
- If the car you presently own is over 3 years old you are more likely a buyer. While not always true, you can usually drive for less if you're willing to buy and drive for at least 3 years.
- If you don't mind doing your own car repairs, you probably don't mind driving a car after the warranty expires.
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You're more likely to lease
- Lease arrangements usually involve a 15,000 miles-per-year cap and charge for extra miles. If you drive very little, you may be a candidate for a luxury lease.
- When you negotiate a 24 or 36-month lease, you can be sure you'll always be driving a new vehicle.
- Although you need to maintain and repair your leased vehicle just as you would an owned vehicle, because you typically lease for 2 to 3 years, the car is normally under warranty.
- Many people prefer to drive a vehicle that is priced above their means and leasing provides the solution.
- If you don't mind not owning the car, you are free to enjoy the benefits of leasing like low monthly payments and a low down payment.
- If you own the company, and you use your car for business, check with your tax advisor. You may be able to deduct your auto expenses, including your monthly lease payment. And if the company you work for gives you a monthly car allowance, you may want to lease since you'll be able to drive a nicer car for a lower monthly payment.
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