Should I Buy or Lease a Car?

If you're shopping around Shadeland, IN, for a Lincoln, it's good to familiarize yourself with the benefits of leasing vs. buying your next vehicle. If it's been a while since you weighed the advantages of these two financial paths, take a moment to refresh your memory on their differences. Then, fill out our secure credit application and contact Lincoln of Lafayette, IN, to arrange test drives and to discuss your financial options. 

Leasing vs. Buying a Car 

Should you buy or lease a car? That depends on what your needs are. Neither path is better, but they are tailored to suit different sets of needs. For instance, leasing is great for drivers who love flexibility and want to free up their monthly budget more than they need to invest. Meanwhile, financing is great for those drivers who are willing to sacrifice upfront and commit to the long haul for a bigger payoff down the line. If you're shopping for a new vehicle near Dayton, compare leasing vs. buying below: 

Leasing

Lease a car, and you'll take a loan that covers the depreciation to occur over the course of a temporary lease term. That term usually ranges from two to three years, over the course of which you'll enjoy exclusive access to the vehicle. Because you're not paying off the full value of the vehicle, you can expect lower monthly payments. Many lease agreements don't require a down payment, or down payment requirements are much gentler. Leased vehicles are also typically covered by the original manufacturer warranty, so repair costs aren't often a concern. Finally, when you lease, you have much greater flexibility, because when your lease expires, you can renew it, terminate it, change your car, or finance your lease car. 

Financing

This is when you essentially buy your vehicle by taking out a loan on its full value. By doing so, you obtain the title of owner and can sell the vehicle at any time. While financing requires larger monthly payments and a larger down payment, you gain the ability to keep any funds received from selling your vehicle, so long as they exceed the remaining balance on your loan. In most cases, financing is the most cost-effective path in the long run, as you get to build equity. Plus, you can accessorize your vehicle however you like, and you don't have to worry about any of the monthly mileage limits or wear-and-tear fees associated with leasing. 

Schedule to Test Drive Our New Lincolns Near West Lafayette, IN 

Now that you've compared leasing vs. buying, we hope you have a clearer idea of whether you should buy or lease a car. If you have more questions, don't hesitate to call us at 765-340-8336. And while you're here, learn about the many reasons to work with Lincoln of Lafayette, IN!