How do you know if leasing or buying a vehicle is best for you? Learn here!
Benefits of Leasing a Car
While a car loan is based on the full price a car, leasing a car is only based on a percentage of the vehicle’s price. For example, if a car is worth $30,000, a $30,000 loan would be taken out on the car if it were to be bought. When leasing a vehicle, you would pay the difference between the car’s full price versus what it is expected to be worth at the end of the lease. If the car’s value is to be fifty-five percent after three years, that means a $30,000 vehicle would be worth $16,500, having you pay $13,500 rather than $30,000.
For people that do not have sufficient funds to make a large down payment on a vehicle, leasing would be a better option. The down payment on a leased vehicle is negotiable. However, the less money that is initially put down will result in higher monthly lease payments.
Like the newest vehicles? Since leases usually last about three years, you can always make sure that you have a new car. Leasing a new vehicle also means that it is covered under factory warranty. Plus, you don’t have to worry about selling your car or getting a good price for your trade in.
Benefits of Buying a Car
After you pay off the car loan, the vehicle is yours. Plus, you no longer have to make a monthly car payment, which means that you can save money!
For over 60 years, the McGrath Family of Dealerships has been proudly providing the Cedar Rapids / Iowa City / Waterloo Corridor region with high quality vehicles, unmatched prices, and informed, friendly consultants that simplify your car buying experience.
Article reference: U.S. News and World Report – Buying and Selling