Wanting a different vehicle can be stressful, on top of that there is also the decision of whether to lease or buy.
Did you know there is a way to drive your new car for less money? Many of our customers in Iowa have only considered two methods for purchasing something new to drive. Paying cash or financing a portion of a new vehicle. Both are common and easy to understand but many overlook the third option of leasing their new vehicle.
As with anything new, it may sound or appear scary until you know the facts. The following information about leasing vehicles in Iowa could determine which option may be right for you.
Buying
Ownership. One of the greatest perks of buying a vehicle is claiming ownership once all payments have been made. While monthly payments are usually higher, you are paying off the entire vehicle including tax, interest and other finance charges. When you buy a vehicle, you never have to worry about driving over a set number of miles like you would with a lease.
With ownership of the vehicle, you are able to modify it in any way you would like. Leasing a vehicle will limit your ability to do this. Owning a vehicle also gives you the freedom to sell or trade at any time.
Leasing
Payments are typically lower, and you get to enjoy driving a new vehicle every few years, however, you will always have a vehicle payment. With a lease, you are more or less renting for a set amount of time. In doing this, you are not affected by vehicle depreciation. That being said, since you do not own the vehicle there are limitations to the number of miles you put on it each year. Entering into a lease often includes clauses in the contract that spell out additional charges for the vehicles “wear and tear”.
Depending on the type of lease you choose, when the term is up you walk back to the dealership and start picking a new one. You might have the option to finance the remaining value on the vehicle.
Companies like Ally are making eligible pre-owned vehicles available for lease too! With Ally Pre-Owned SmartLease℠, you are able to choose models less than 4 years old, and have fewer than 75,000 miles on them!
Conclusion
The decision to lease or buy will always depend on your personal preferences. You will need to ask yourself what your goals are. If your goal is to drive a new vehicle while minimizing your monthly costs, leasing may be a good alternative. If you want to own a vehicle someday, buying is going to be your best option.
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