If you're shopping for a new car in Rapid City, Belle Fourche, or Sioux Falls, you may be wondering if you're better off buying or leasing. The short-term commitment, lower monthly payments, and wider selection of vehicle options makes leasing a popular choice for many car buyers, but others prefer the investment and ownership of buying.
So, which is right for you? Explore the differences between these two car-buying options with our buy vs. lease comparison. Then get started by filling out our online finance application.
Leasing Pros and Cons
Many buyers choose leasing because of the short-term commitment. When you lease, you drive a vehicle for a few years before returning it to the dealership to move on to the next option or buy it outright. Leasing gives you the freedom to enjoy all the newest options on the market without worrying about depreciation and the resale or trade-in value in the future. Also, since you're only renting a few years of the vehicle's life, you may not need a down payment and you'll have lower monthly payments.
Despite all this, leasing does have a few downsides. At the end of the lease period, you're responsible for any damage, wear and tear, or high mileage, which can add up to a higher final cost. You also have monthly payments without the asset of owning the vehicle, so if you continually switch vehicles every few years, the costs can add up.
Buying Pros and Cons
Buying a vehicle has many advantages as well, such as ownership and total freedom over the vehicle. Because you own the vehicle, you don't have to worry about damage or high mileage, and you can customize your vehicle however you like. You also have a vehicle to sell or trade in on your next vehicle, and you can enjoy the peace of mind of having no monthly payments when the loan is complete.
Buying a vehicle has some disadvantages, however. As the owner, you're responsible for any repairs or maintenance after the warranty period, as well as taking the vehicle's initial depreciation hit. New vehicles come out with more and more exciting features and technology as well, but you'll be stuck with an outdated model.
Learn More About Buy vs Lease
As you can see, buying and leasing each have their advantages, but choosing between them comes down to your needs. If you prefer to drive the hottest cars every few years and don't rack up the mileage, leasing is a great choice. If you want to pay into a loan to have a vehicle asset and want control over your own vehicle, buying may be the better option.
If you're in Rapid City, Belle Fourche, or Sioux Falls and have questions about buy vs. lease, Liberty Chrysler Dodge Jeep Ram FIAT can help. Our expert finance team will be happy to go over the differences between buying and leasing a vehicle, so you can weigh your options and decide which is right for you. Contact us or stop by today to get started!