Buying Vs. Leasing A Car: Which Is Best for You?

Buy or Lease a New Car in Jefferson City, TN

You have a lot of important questions to consider when shopping for a vehicle. Of course, you want to make sure you shop for something that fits your budget and comes with the right features. If you have your eye on a new model, you need to decide whether buying or leasing makes the most sense. The decision to buy or lease a vehicle in Jefferson City, TN, is something that a sales associate at Tarr Chevrolet can help you with. Our dedicated team will explain how both processes work, what benefits and drawbacks each have, and every important facet of this process. When you shop with us, you’ll have a positive experience and leave the dealership feeling confident in your decision.

Buying vs. Leasing

It’s important to understand the differences between auto financing and leasing. Depending on your preferences and situations, one might be the better option for you. When you purchase a car with an auto loan, you make monthly payments until you pay it off. At that point, you will own the car outright and will no longer have to spend the money on a monthly car bill. With a purchase, you are free to make any changes to the vehicle and drive it as much as you would like.

On the other hand, with auto leasing, you are essentially renting the vehicle. You’ll typically have it for a three-year term when you lease. Because of this, your payments will be less for a lease than for a purchase. This happens because you are paying for the lease term, not the whole vehicle. Leases also allow you to drive the latest model and therefore have all the newest features at your fingertips.

Other key points of buying and leasing options include the following:

• Buying makes more sense when you are building credit as an auto loan can diversify your credit portfolio, improving it when you consistently make on-time payments.
• You won’t need to put as much down for a lease as you would for a purchase.
• Your interest rate will usually be lower on a car you lease, and there is also no sales tax.
• Leasing will come with mileage restrictions, which are usually around 1,000 miles a month. If you go over this mileage, you will have to pay a penalty when the lease expires. Purchasing does not have these restrictions.
• When your lease expires, you can simply return the car to the dealership. You may also purchase the same vehicle or lease another new one.

Buy or Lease a New Vehicle at Tarr Chevrolet

Consider what happens when you finance vs. lease a car. Both have pros and cons. If you need more help deciding what you should do, let the team at Tarr Chevrolet in Jefferson City, TN, assist you. Our dedicated sales associates will answer any of your questions and guide you through the buying or leasing process.