Buying vs Leasing

When it comes to purchasing a new vehicle, the idea of buying vs leasing often arises. There are key differences to help determine if you are in the market to leave a vehicle or buy one. To help you make an informed and educated decision we have provided the necessary key differences between leasing a vehicle vs buying. When you buy the new or used car you pay for the entire cost of the vehicle. When you lease the new or used car, you pay for only a portion of the vehicle’s cost, which is the part you use during the time you are driving it.

Buying A Car

Who Owns It

You do. When you buy a car you either pay cash or finance it and make monthly payments. Of course, if you’re financing it, you’ll have to meet the obligations the lender requires, like a certain down payment amount and timely monthly payments or consequences may arise.

Up-front Costs

When you buy a car there are some costs to account for before you take the vehicle home. If you’re financing your car, the bank will probably request a down payment. You can also trade-in another vehicle and use any equity towards your down payment. The amount of the down payment is usually based on the lender’s requirements and your credit score.

Future Value

Your vehicle will be worth whatever you can sell it for in the future and that depends on how well you maintain it. (Be smart and protect your investment with regular scheduled maintenance by a factory-authorized facility like South Oak Dodge!)

End of Payments

Once you’ve paid off what you owe on your contract, that’s it. Your vehicle is 100% yours. The lending institution will send you a Lien Release as proof that the vehicle is completely paid off and all yours.

Leasing A Car

Who Owns It

When you lease a car you borrow the vehicle for the agreed upon term signed, therefor, you do not own the car when you lease. You’re paying for the use of the vehicle, but the finance institution that you leased it through actually owns it. This is usually why you pay less per month in a lease than if you were to buy the car.

Up-front Costs

Leases often do not require any type of a down payment. All you usually have to pay is the first month’s payment, a security deposit, the acquisition fee and other fees and taxes. But, as with a purchase, if you want to lower your monthly payments you can always pay more upfront.

Future Value

In most leases you don’t end up owning it so you don’t end up selling it. That’s the financial institution’s job. Although you may have mileage limits and wear and tear guidelines that, if you exceed them, could cost you extra money when you turn your vehicle back in.

End of Payments

Most people return the vehicle at the end of the lease term. But some like to purchase it during their lease or at the end. Others like to trade it in before their lease is over. Just ask us about these different options before signing any paperwork and we’ll make sure you have your lease set up the way you want it.

Best Cars to Lease

The best cars to lease are those with the best book value after the term of the lease. Since they depreciate less, you pay less. Review the lease ratings to see which cars retain their value.

There are many factors to consider when deciding whether or not it’s in your best interest to lease or buy a vehicle. For more information visit your friends at South Oak Dodge and we will provide you with all the necessary information to decide if your next vehicle should be purchased or leased. 


47357|2473

DEALER INFORMATION

Denny Guest's South Oak Dodge Chrysler Jeep Ram
4550 Lincoln Highway
Matteson, IL 60443
Phone: (708) 747-7950
Driving Directions & Map

Sales Hours

Mon: 9:00a - 9:00p
Tues: 9:00a - 9:00p
Wed: 9:00a - 9:00p
Thurs: 9:00a - 9:00p
Fri: 9:00a - 9:00p
Sat: 9:00a - 6:00p
Sun: Closed

Service Hours

Mon: 7:30a - 8:00p
Tues: 7:30a - 8:00p
Wed: 7:30a - 8:00p
Thurs: 7:30a - 8:00p
Fri: 7:30a - 8:00p
Sat: 8:00a - 4:00p
Sun: Closed

Parts Hours

Mon: 8:00a - 8:00p
Tues: 8:00a - 8:00p
Wed: 8:00a - 8:00p
Thurs: 8:00a - 8:00p
Fri: 8:00a - 8:00p
Sat: 8:00a - 4:00p
Sun: Closed
Denny Guest's South Oak Dodge Chrysler Jeep Ram on Facebook
Denny Guest's South Oak Dodge Chrysler Jeep Ram on Twitter
Denny Guest's South Oak Dodge Chrysler Jeep Ram on YouTube
Recently Viewed Vehicles
AdChoices