Buying vs Leasing Pros and Cons

When you're on the hunt for a new vehicle, deciding the type of car or truck you would like is only the first step. Next, you must decide whether to purchase or lease the vehicle. You may have asked advice for friends and family and each of them likely gave you a slightly different answer which may still have you feeling confused. That is why our team of Dodge and RAM experts here at Freehold Dodge Inc located in the Tinton Falls area are happy to walk you through some of the various pros and cons of both leasing and financing a new vehicle.

Financing Pros and Cons

Pros

Perhaps the most common way to purchase a vehicle, financing a new-to-you car or truck is a great way to truly own the car of your dreams. The first benefit is that you can set a monthly payment plan that works for you. This can be done in a variety of ways including setting the loan term to several months that allows for the desired monthly payment or by placing a large enough down payment on the vehicle that the monthly loan payments are at an agreeable level. Also, because you own the vehicle, there are no restrictions on what you can and cannot do with it. Feel free to put as many or as few miles on it as yours, please. Finally, cars that you own can be used for trade-in value when it's time to purchase a new one. We value your trade-in as high as possible to maximize the amount we can put toward a new vehicle. Financing at Freehold Dodge Inc near Howell, NJ is a simple, transparent process that allows you to be in the driver's seat of the whole process.

To review, the pros of financing are as follows:

  • Allows You To Eventually Own The Car Outright
  • Allows You To Dictate Your Monthly Payments
  • Maximize Mileage
  • Trade In Options For New Vehicles

Cons

While many Freehold, NJ drivers love the idea of financing a new vehicle, there are some potential pitfalls to consider. For instance, when you finance a car, you are now responsible for all the maintenance and repairs that go into every vehicle. Some owners try to do this work themselves while others pay a dealership or local garage to do this work for them. Additionally, some drivers don't like the long-term commitment that comes with financing a car. Those that buy a car outright are likely going to own it for many years. Also, for those who may not have the greatest credit score, interest rates can be excessively high which may lead to much higher than anticipated monthly payments. Finally, financing may require you to save up a large down payment if you are not able to get pre-qualified for a large enough loan.

To review, the cons of financing are as follows:

  • In Charge Of Your Own Maintenance
  • Locked Into A Vehicle For Many Years
  • Potential For High Interest Rates
  • May Need To Make A Larger Down Payment

Leasing Pros and Cons

Pros

Many find leasing a vehicle an attractive option because of the many benefits. First, all maintenance and repairs are fully covered under the terms of the lease meaning you'll never have to waste a weekend under the hood of your car. Leases also allow Jackson, NJ drivers to frequently drive a new vehicle which allows them to always experience the latest and greatest in automotive technology. Also, because the monthly payments remain the same for the full term, there are never any surprises when leasing. Finally, some leases even have the potential for no down payments meaning that you want to have to set aside additional savings.

To review, the pros of leasing are as follows:

  • Maintenance Fully Taken Care Of
  • Allows Drivers To Experience A New Vehicle Every Few Years
  • Allows For Known Payments Each Month
  • Potential For No Down Payment

Cons

There are however some downfalls to leasing. The first is that most leases come with mileage restrictions. If you are a frequent high mileage driver, leases may not be right for you. Also, because you don't own the car, no trade-in value can be redeemed if you decide to purchase a vehicle at any time. Leases also have the potential for additional fees if you have worse than normal wear and tear on the car. Finally, because the cars are typically newer, your insurance premiums will likely be higher to cover this higher-valued asset.

To review, the cons of leasing are as follows:

  • Mileage Restrictions
  • No Chance Of Trade-In Value
  • Potential For Additional Fees At The End Of Lease Term
  • Higher Cost Of Insurance
  • Frequently Asked Questions

Get More Information

Contact us to get more information on what option would work best for you.

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Financing FAQ

Can I End A Lease Early If I Don't Like The Vehicle?

Typically, leases are structured like a contract which expects the driver to continue making monthly payments until the term is up. In some cases, leases can be terminated early but typically come with additional termination fees.

Am I Locked Into My Interest Rate If I Finance A Vehicle?

While most drivers who decide to finance the purchase of their car remain locked into their interest rate for the entirety of the loan term, there are some options to refinance with various lending institutions. This is typically done when a borrower's credit rating has greatly improved since the time the original loan was taken out.

Does Freehold Dodge Inc Provide Servicing For Vehicles Whether They Or Leased Or Financed?

Yes! Our experienced service team is more than happy to provide Manalapan drivers with all servicing requirements whether that be routine maintenance or unforeseen repairs.

Get in Touch

  • Contact Our Sales Department: 7327021042
  • Monday09:00AM - 08:00PM
  • Tuesday09:00AM - 08:00PM
  • Wednesday09:00AM - 08:00PM
  • Thursday09:00AM - 08:00PM
  • Friday09:00AM - 08:00PM
  • Saturday09:00AM - 06:00PM
  • SundayClosed
  1. Freehold Dodge Inc

    South Street At Rt9
    Freehold, NJ 07728

    • Sales: 7327021042
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