Buying vs Leasing a Car or SUV in the Vermont Area

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Purchasing a vehicle is always a big decision. Not only do you need to find one that fits your automotive needs, but you also want to find one that has the features you desire and that you'll enjoy driving. But those are not the only choices you have to make. You also need to decide between financing or leasing your new vehicle. That's why the experts at Midstate Chrysler, Dodge, Jeep, and Ram in Barre, VT have put together this comprehensive comparison of both payment options, so you can choose the best one for you.

Leasing vs. Financing Differences

Both financing and leasing have their merits and drawbacks, so it's important to understand the differences between these two payment options before you purchase a vehicle at our dealership in Barre, VT. Depending on your needs and preferences, one option may be better for you than the other.

Financing Advantages

Leasing Advantages

  • You can customize your vehicle with accessories and modifications
  • Avoid mileage restrictions
  • You don't have to worry about excessive wear and tear
  • Once you've made your last monthly payment, you own the car outright
  • Lower monthly payments
  • You can upgrade to a new vehicle every few years
  • Lower or sometimes no down payment required
  • Lower maintenance since lease vehicles typically come with a full manufacturer's warranty

Financing Disadvantages

Leasing Disadvantages

  • You will likely have higher monthly payments than if you lease your vehicle
  • You are responsible for all maintenance and repairs on your vehicle
  • Once the manufacturer's warranty has ended, you will be responsible for any and all repairs your vehicle needs, including major components like the engine or transmission
  • Mileage restrictions; typically 12,000 miles or less a year
  • You can't modify the vehicle in any way
  • If there is excessive wear and tear to the vehicle's cabin or exterior, you will incur fees and be responsible for paying for any repairs or damage to recondition the model.

Choosing how to finance your new vehicle is a important decision.  Leasing should be considered if you like to drive a new vehicle every two or three years, enjoy a lower monthly payment, benefit from lower driving costs by forgoing major maintenance expenses and drive approximately 18,000 miles a year or less.  With rapidly changing technological advances, you keep up-to-date on the latest safety, electronic, communication and fuel economy improvements that newer models deliver.

You may want to consider a loan to finance your next vehicle if you like to keep it for longer than three years or you plan to highly customize your vehicle.  Other pros are the ability to drive it as much as you like, but remember that higher mileage lowers the value of your vehicle.

Some people have started to use seven or eight year loans to finance the purchase of a vehicle, with little to no chance of any having any substantial equity in the vehicle they have purchased, all to keep their payments under control.  Leasing my be the better answer.

Why do leases cost less per month?

Lets use this example.  If you lease a truck that costs $35,000 after discounts and rebates, that will have an estimated value of $26,000 after 36 months, you only pay for the $9000 difference (depreciation), plus lease finance costs and fees.  With a purchase loan, you pay the entire $35,000, finance costs and fees.

In addition, many manufacturers offer additional rebates for leasing and subsidized rates.  These factors are why leasing offers significantly lower payments than a typical auto loan.

For years leasing was the choice for customers purchasing high end vehicles.  Today the popularity of driving more car for a lower monthly payment has taken off with mainstream vehicles and consumers that want to lower their cost of driving, using the savings for other priorities.  If you have questions about leasing or leasing terms, let our team help answer your questions.

Which is the better option for me?

Auto leasing vs. financing ultimately comes down to personal preference. Leasing is better for people with short commutes and who take really good care of their cars. Financing is a good option for people who value ownership and plan on driving their car for years after they've finished paying back their loan. Regardless of what option you decide to go with, our team of finance experts will help you every step of the way to ensure you get the best possible deal for your monthly budget and lifestyle.

Are you ready to get behind the wheel of a new Chrysler, Dodge, Jeep, or Ram model? Apply for financing from the comfort of your own home using our online finance application. Be sure to also check out our financing and leasing incentives for the best deals available. If you have any questions regarding any part of the purchasing process, reach out to the team at Midstate Chrysler, Dodge, Jeep, and Ram using our contact form or call (802) 461-4928 to speak with one of our finance experts directly.

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