If you're shopping for a new vehicle, you might be asking yourself: "Is it better to lease or buy?"Â
First, you should know there's no one right answer for everyone. Whether to lease or buy really depends on a number of factors such as the vehicle you're interested in as well as your needs as an individual.
At Davis Dodge Chrysler Jeep RAM in Yulee near Jacksonville, our financing department is always happy to help our customers secure vehicle financing for an auto loan or lease. Learn more about the pros and cons of buying vs. leasing a new vehicle below.
Pros & Cons of Buying a New Vehicle Outright
Of course, the most obvious benefit of buying a car outright is that at the end of your financing term, you own the vehicle.
Other benefits of purchasing a vehicle include:
- You are able to customize your vehicle as you like.
- There are no mileage restrictions.
- You are able to sell the vehicle for money toward your next vehicle.
The disadvantages of purchasing a vehicle include:
- Your down payment and monthly payments will be more expensive.
- Your vehicle's value will depreciate over time beginning as soon as you drive off the lot.
- You will have to pay out-of-pocket for any maintenance and repairs not covered under warranty and for all maintenance and repairs once your warranty expires.
Pros & Cons of Leasing a New Vehicle
Many people prefer to lease a new vehicle for a lower overall cost much like a monthly subscription for Netflix, Hulu, or Spotify.
The main benefits of leasing a vehicle include:
- Your down payment and monthly payments will be lower.
- You may be able to afford a higher-end vehicle with a lease.
- You're not paying for the depreciation of the vehicle.
- If you lease back-to-back, then you always get to enjoy driving a newer vehicle.
- In Florida, if you decide to purchase your lease vehicle, you have already paid for sales tax and will not be required to pay it again.
- Most maintenance and repairs will be covered under warranty.
There are a few cons to leasing a vehicle though, which include:
- There are mileage limits, and there are usually costly penalties for exceeding these.
- You will not be able to customize your vehicle.
- Most lease terms cannot be ended early without financial penalties or obligations.
Buy or Lease Your Next Vehicle at Davis CDJR in Yulee
Serving Jacksonville, Amelia Island, Ferdinand Beach & Kingsland
Knowing the pros and cons of leasing vs. buying can help you decide which car, truck or SUV is right for you. Shop our new vehicles online, and contact our financing department when you're ready to buy or lease!
Davis CDJR is located in Yulee near Jacksonville, Amelia Island, Ferdinand Beach and Kingsland, and we're always happy to help our customers find the right vehicle and financing options.
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