Once a buyer has decided which model he or she wants, the next step is to determine the best way to pay it. Not many people are able to purchase a car in cash, leaving most buyers with the option of leasing or purchasing with a car loan. There are benefits and drawbacks to each approach. Here are some things to keep in mind when deciding if you want to buy our lease your new Chevrolet in Naperville.
Initial Costs
Typically, when a car is purchased, the dealership or financing agency will require a down payment, taxes, registration and other nominal fees. The amount of the down payment will typically be a percentage of the overall cost of the vehicle, but may depend on the creditworthiness of the buyer. When a car is leased, the initial costs will usually include a down payment, the first month’s payment, taxes, registration, and other nominal fees. A security deposit is also required.
Ongoing Costs
Monthly payments on a purchased car will typically be higher than monthly lease payments. Lease payments cover the car’s depreciation over the duration of the lease, whereas monthly payments made on a loan cover the entire cost of the vehicle. In addition, keep in mind the ongoing expense of car ownership. Leased vehicles will always be fully covered by a warranty, and are usually problem-free.
Terms
When a buyer purchases a car, even with a loan, the car is theirs until they choose to sell. The duration of the loan will depend on the loan agreement signed between the lender and the buyer. Leases are usually two to four years in length, with the option to purchase the car or upgrade to a better model at the conclusion.
Miles
One big perk of ownership is that it doesn’t matter how many miles a driver puts on their vehicle. The only penalty for owning a car with higher miles is that it will lower the eventual trade-in value, and increase maintenance costs. Most leased vehicles will stipulate how many miles a lessor can drive each year, with fines or fees payable if those miles are exceeded.
Vehicle Condition
Another perk of vehicle ownership is that any damage done to the vehicle doesn’t necessarily have to be repaired immediately as long as it doesn’t impact the functionality of the car. When a vehicle is leased, however, any wear and tear considered beyond what would be normal is the responsibility of the lessor.
The decision to buy or lease a new Chevrolet in Naperville is one that will ultimately depend on what is best for each individual’s lifestyle. Contact Hawk Chevrolet Cadillac of Joliet to know more.
