Buying v. Leasing

Shopping for a new vehicle can be an overwhelming experience. With so many different makes, models, trims and colors to pick from, it's hard to sit down and make a decision in a short time period. Then, once you have spent hours, weeks, or even months selecting the perfect vehicle for your needs, a sales person presents you with two more options: financing or leasing. 

Don't be scared...the last thing we, as a dealership, want you to feel is overwhelmed. Car buying should be a relaxing and enjoyable experience! So while you are researching your next new vehicle, take a minute to review the pros and cons of buying v. leasing. Here are the differences:

• When you buy, you pay for the entire cost of a vehicle; regardless of how many miles you drive it. You typically make a down payment, pay sales taxes in cash or roll them into your loan, and pay an interest rate determined by your loan company based on your credit history. You make your first payment a month after you sign your contract. Later, you may decide to sell or trade the vehicle for its depreciated resale value.

• When you lease, you pay for only a portion of a vehicle's cost, which is the part that you "use up" during the time you're driving it. You have the option of not making a down payment, you pay sales tax only on your monthly payments (in most states, unfortunately Illinois requires you pay the tax at signing), and you pay a financial rate, called money factor, that is similar to the interest on a loan. You may also be required to pay fees and possibly a security deposit that you don't pay when you buy. You make your first payment at the time you sign your contract for the month ahead. At lease-end, you may either return the vehicle, or purchase it for its depreciated resale value.

So, which option is the best for you? The answer is – it depends on what's most important to you. All of us have different lifestyles and priorities, especially when it in comes to cars and in finances. Vehicle lease-versus-buy decisions must be made with your own lifestyle and priority attributes in mind. What's right for one person can be totally wrong for another. 

If you still don't know which option is best for you, try our Lease v. Finance calculator or contact a member of our sales staff at 217-935-3156. We would be happy to help answer your questions!