Buy vs. Lease: What are the Advantages of Each?

A lease always will require an initial payment often ranging between about $2,000 and $4,000. Depending on your personal credit rating, you might qualify for financing with no down payment. Most will want something, though. Usually as low as $500 to $1,500 or more. A trade-in can offset the down payment for either a lease or a car loan.

When you buy your car, it belongs to you. A finance company would put a loan on it, but you own it after you pay off the loan, and you can rack up as many miles on it as you want. That makes it a lot more affordable to go places in Herkimer. Ownership gives you equity and a return on investment. That return is better when you include warranty coverage and a service contract to keep your car, truck, minivan, or SUV in like-new condition. A service contract provides the preventative maintenance a vehicle needs to stay in top running condition. A warranty covers any mechanical failures not caused by negligent ownership.

A lease agreement keeps your monthly payments affordable for a brand-new car. Many lease agreements last two or three years. They limit the number of miles you can put the car each year, often to between 10,000 and 12,000 miles. When you surrender the car at the end of the lease term, you pay additional fees if you exceed the allowed annual mileage. Service agreements ensure the car gets maintained and cared for throughout the lease term. If you are considering buying versus leasing a new car, our finance specialists at Steet Ponte Chevrolet can help you choose the best option for your needs.

For more information check out our Buy vs Lease page or and to speak with a member of our finance team, we invite Utica drivers to please call, click, or visit us in person today!