At Paradise Chevrolet Cadillac, we can happily say that we have many satisfied customers all over Temecula, CA and nearby Murrieta, Menifee, Perris, and Escondido, CA. And while there are many reasons for our exceptional customer satisfaction, we firmly believe that one of the primary reasons is our approach to providing our customers with an attractive array of options when it comes to financing. At our Temecula, CA Chevrolet dealership, we understand that for many dealerships here in Southern California, financing can be a frustrating and inflexible process. Fortunately, here at Paradise Chevrolet Cadillac, we not only offer an attractive array of options for buying and leasing the Chevrolet model of your dreams, but we also work with each and every customer to find the financing solution that fits their budget most perfectly. And to that end, we've also put together a helpful breakdown of the differences between buying and leasing here at Paradise Chevrolet Cadillac, so that you can easily understand the benefits of each option, and find the one that's right for you.
Benefits of Leasing
If you want to go this route, then you know the right way on how to lease a car. Here are 6 advantages of leasing a car:
1. Lower monthly payments. The cost to lease a car is typically much lower than to buy one. Little or no down payment is required, and you don’t have to pay any upfront sales tax. However, when you return a leased vehicle, you may have extra charges for racking up mileage that exceeds the allowable limit, terminating a lease early, or having any unrepaired damage.
2. Never being “upside-down.” When you lease a car you rent it for a fixed term, which is typically one to 4 years. The amount you pay each month is tied to the amount of depreciation that’s expected during the lease term. (Different makes and models of vehicles depreciate at different rates.) You only pay for the depreciation of the car that occurs during your lease term and you can never be “upside-down,” which is a common situation where vehicle owners owe more than their car is worth.
3. Fewer repair expenses. If you’re covered by a manufacturer warranty during your lease term, you never have to worry about getting hit with a large, unexpected repair bill. However, you are still responsible for regular upkeep, maintenance, and the minimum amount of auto insurance required by the state where you live.
4. Driving a new car more often. If you lease a new vehicle every few years, you will always have the benefit of driving a car with the most up-to-date technology, comfort, and safety features.
5. Never having to sell a vehicle. Once a “closed-end” lease term expires you can simply return the vehicle or choose to initiate a new lease for a different vehicle. But you never have to go through the hassle of selling a vehicle yourself or being concerned about getting a fair trade-in value. Or you may have the option to buy a vehicle at the end of the lease term for a pre-set price. That could be a good idea if the vehicle is worth more than the agreed upon purchase price—or a bad idea if it is worth less money.
6. No loan approval required. If you have less than stellar credit, you may not be approved for a car loan–or you’ll have to pay an outrageous amount of interest. Leasing companies typically aren’t as strict as lenders because they can easily take back the vehicle if you don’t make payments or if you violate any lease term.
Benefits of Buying
Here are 5 advantages of buying a car:
1. Paying less over the long term. Monthly lease payments are generally less expensive than monthly car loan payments. However, with each loan payment, you can build up equity for the future when you decide to sell it or trade it in. Buying a vehicle and driving it for several years after you pay it off can be the cheapest way to own a car. The longer you drive it, the less it costs.
2. Have the option to sell it. As a car owner, you have the flexibility to trade it or sell it (and pay off any existing loan balance) at any time. You’re never locked into a fixed ownership period like with a car lease.
3. No mileage limit. When you need to drive a vehicle as many miles as you want, it’s much better to own it. Leases put caps on the number of miles you can drive and charge a hefty fee when you exceed the limit.
4. No restrictions on appearance. If you want to use a car or truck without having to keep it in perfect condition or want to accessorize it, you should always buy it.
5. Discount the depreciation. Depending on the vehicle, 20% to 40% of its depreciation can occur within the first few years. So when you buy a 2- to 3-year-old-vehicle, you get the advantage of paying a price that reflects a substantial depreciation discount.
Visit us at Paradise Chevrolet Cadillac to learn more about buying and leasing today!
These are some of the main benefits of buying and leasing, and we hope that they've given you a better insight into your financing options. That said, if you want a little more in depth help with leasing and financing, we'd be only too happy to help you here at Paradise Chevrolet Cadillac. Stop in to our Temecula, CA dealership, conveniently located close by to the communities of Perris, Escondido, Menifee, and Murrieta, CA to browse our selection of new Chevrolet models and used cars, and let our team answer any questions you may have about your leasing or purchasing options with us!