Leasing vs. Buying from C. Harper CDJR

Leasing vs buying a vehicle are two very different concepts of ownership. If you’re looking into a car and wondering what your options are, particularly between buying and leasing, this article will help you understand them. Let’s get into it. 

Leasing vs. Buying: What's the Difference? 

What Does It Mean to Lease a Vehicle? 

Leasing a vehicle means paying for the right to use the vehicle for a specified period and mileage (like 2-3 years). There are also limitations and specific rules, such as payment commitments, mileage limits, and other temporary ownership responsibilities. 

What Does It Mean to Buy a Vehicle? 

Buying a car means you pay the agreed price and it's completely yours. You'll also take responsibility — from maintenance and insurance to repair costs —but you'll have the freedom to drive as much as you want or customize it as you wish.   

Benefits of Leasing a Jeep, Ram, Dodge, or Chrysler 

Lower Monthly Payments

An essential part of leasing a car is the financial commitment, usually in the form of monthly payments. Compared to buying, monthly payments in leasing are typically much lower. This is because you’re paying the vehicle’s expected depreciation loss during the time you drive it. 

Drive A New Vehicle More Often

With lease terms commonly running from 24- 36 months, drivers have the chance to switch to a new vehicle. So if you’re leasing one car and interested in trying another model, a leasing option allows you to do just that.

Factory Warranty Coverage 

Many leasing terms include warranty coverage, so your car is covered for the duration of the lease. As a result, it keeps your repair risks low. However, keep in mind that excess wear and tear, such as significant scratches and stains, may be charged at the end of the lease. 

Flexible End-of-Lease Options 

Many dealerships provide flexible end-of-lease options, allowing you to stop, extend the contract, switch to a different model, or purchase the vehicle for its remaining value. This provides buyers with a wide range of options to choose from, allowing them to make an informed decision. For example, if you like the car, you can continue or fully purchase it; if you don't, you can walk away or try another car.

Benefits of Buying Your Vehicle 

Long-Term Ownership

Buying a vehicle means you can keep it as long as you want. This also gives the possibility of completely eliminating monthly car bills once your auto loan is fully paid off. In other words, you can keep the vehicle in your garage long-term while freeing up significant monthly cash flow for other financial goals.

No Mileage Restrictions

Driving a car you fully own gives you the freedom to drive as much as you want and as far as you want. Cross-country road trips, long daily commutes, all without having to count miles and think of mileage restrictions.   

Build Equity

For every payment you make on your monthly loan, that goes into a tangible and tradeable asset that you can eventually own. With leasing, for instance, your payments pay for use/depreciation rather than building ownership equity. 

Customize Your Vehicle 

Some drivers like the idea of customizing their cars to fit their taste and lifestyle. This is possible with full ownership. You can upgrade the car’s audio, install custom wheels, or change the color, all without worrying about strict leasing terms or restoration costs.

Should I Lease a Jeep? 

Leasing May Be a Good Fit If You... 

Car manufacturers constantly release new models, with different features and technologies. If you like the opportunity to try different models, leasing may be the better option. If flexibility is also your number one goal, many leasing terms provide this. You can end the contract, continue, upgrade to a new model, or, if you really love the car, buy it out. 

Finally, if your lifestyle keeps your driving distance predictable and steady, leasing could be the choice that fits your needs. 

Buying May Be Better If You…

Purchasing a car is the ideal choice if you prefer autonomy over your vehicle. Buying a car puts you in the driver's seat over every decision. You can customize your ride as you like, go long distances with no mileage limits, or simply like the idea of having full ownership of your asset. These factors are especially true for Jeep vehicles, where modifications are common and frequently required for journeys such as adventures or weekend getaways, requiring items such as road tires and custom light bars.   

Questions to Ask Before Deciding 

How Many Miles Do You Drive Each Year?

The first question to ask yourself when deciding to go for leasing vs buying is the number of miles you drive each year. As we’ve mentioned earlier, leasing terms often include a certain mileage limitation, which puts you at a disadvantage if you require long distances and cover many miles. Exceeding the limitation after the end of the lease typically means paying an extra cost that’s charged per mile over the limit. 

How Long Do You Usually Keep a Vehicle?

Some people buy a car and keep it for many years, while others keep it for only a few and switch to a new one. If you’re the latter, leasing could be the better option, as when the lease term ends, you have the choice to switch to a different car. On the other hand, if you’re a long-term type of person, buying a car is the ideal way to go. 

What Monthly Payment Fits Your Budget?

Leasing a car and taking a loan to purchase a vehicle will require monthly payments. Look at your budget to see which of the two better fits your current and future situation. In general, leasing offers a lower monthly payment than a full purchase. 

Do You Want the Latest Technology?

Think about how important upgrades and features are to you. If you love having the latest technology, being able to switch cars regularly to achieve that preference, leasing will be the better option. If you’re happy driving with the same tech for five to ten years, buying a car will give you precisely that. 

Do You Plan to Customize Your Vehicle?

If you want a vehicle you can modify to match your style, buying a car gives you that freedom. When leasing, the dealership will expect you to return the car with normal wear and tear. Any customization done to the leased car will be the lessee's responsibility to pay to remove the changes made. 

What Happens When Your Lease Ends? 

Lease Another Vehicle

When your lease ends, one of the available options is to switch to another vehicle. This choice is perfect for those who want to try driving another model or brand with different features and technology. The dealership will help with the paperwork, roll any incentives into your next vehicle, and restart your factory warranty coverage. 

Purchase Your Current Vehicle

The next option is to buy out the vehicle you're currently leasing. If you like the car so much, you can purchase it fully by paying the preset buyout price listed on the contract, officially turning your lease into permanent ownership. 

Return the Vehicle

If leasing isn’t for you and you prefer other ownership alternatives, simply hand over the key after completing the vehicle inspection and paying the standard disposition fee and any additional costs, such as extra mileage or damage. 

Discuss Your Options With the Finance Team

It’s always a good idea to talk with the finance team to look at your available options. They’ll be able to analyze your preferences based on the budget you have. The finance team can assist in comparing incentives, outlining discounts, and structuring a loan to suit your needs. 

Are you ready to make the decision? Be sure to check out our inventory at C. Harper CDJR. We have a variety of vehicle options to suit your different styles and needs. Moreover, we have plenty of tools to help you purchase your car in a simple and efficient manner- whether it is buying or leasing-we’ve got you covered! Reach out to our team today to get started.