Should You Lease or Buy Your Next Vehicle?

Should I Lease or Buy My Next Car?

When you make the decision to purchase a new vehicle, it's important to understand your finance options. We here at Larry H. Miller Chrysler Jeep Dodge Ram Riverdale want to help you make that decision. There is no right or wrong answer on how you should finance your vehicle, it all depends on the buyer. Would you rather always drive a new car at a reasonably low monthly payment or finance a car with an end goal of owning it outright?

Benefits of Leasing:

The leasing program that Chrysler provides is a low-cost way of driving a Chrysler, Jeep, Dodge, Ram. There is little or no down payment required, and no up-front sales tax payment (in most states). You only pay for the portion of the vehicle you use. Once the contract is up you can walk away from the vehicle or pay off the vehicle at a very low payment. Little to zero vehicle maintenance!

Many people lease for the length of time the manufacturer's warranty is in effect. This way, if any repairs are needed they are typically covered by the warranty. Chrysler offers a standard 3-year/36,000 mile limited warranty, and additionally offers coverage for the powertrain (engine, transmission, drivetrain) for 5 years or 100,000 miles.

Benefits of Buying a Car

If you keep your vehicle for long periods of time, buying is probably going to be a better option for you. Buying a car, you own the car when the loan is paid in full. With each payment you make towards the loan, you are gaining equity in the vehicle. After your loan is paid in full, you will not have to worry about a monthly car payment, vs someone who has to keep leasing a new car every three years.

One of the biggest benefits of buying a car, is there is no mileage restrictions. Leasing has mileage restrictions that could be from 10,000 to 15,000 miles per year.

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Do you drive the vehicle for business?

When you lease, a portion of the car's depreciation and financing costs can be deducted on your taxes. Interest on loans to buy a car, however, isn't deductible (please consult your tax adviser). A lower payment means more disposable income for other investments.You can tailor your lease to fit your driving habits. Leasing means there is no hassle with trading-in or selling your vehicle. We take the risk of the resale value at the end of the lease and provide you with a set purchase option. You can just hand the keys over to the dealer and get a new lease.
  • Smaller (or no) down payment
  • A new car every few years
  • You can drive a better car for less money
  • No long-term commitment