Fundamental differences between leasing and getting a car loan
When you lease a vehicle from our new SUV inventory, the initial down payment will be lower than with a car loan. The monthly lease payments will also be lower than car loan payments. When you reach the end of your lease contract, you won't have to sell that vehicle because you won't own it.
By contrast, Fairborn, OH customers who buy a new vehicle using a car loan are building cash value, or equity, in the car they drive every day. You won't have any restrictions on the number of miles you can drive, as you would with the lease, and you can customize it in any way if you'd like, another thing you can't do with a lease.
What makes a lease payment lower than a loan payment?
When you lease a vehicle from our new truck inventory, you're paying only for the amount that the truck depreciates over the course of the lease contract. The depreciation is calculated by projecting the market value of that vehicle over the term of the lease. In addition, there are other costs associated with leasing that Dayton, OH customers should know about, including sales tax, use tax, rental charges and other fees.
On the other hand, when you get a car loan from our dealership, the monthly payments will be higher, but you're creating cash value in that vehicle. That cash value, or equity, will eventually be worth thousands of dollars, and you can use that money to help pay for your next vehicle. Leasing is essentially like renting, so a London, OH lessee won't build any cash value. As a result, a customer will pay less money out of his or her pocket with a lease, but would end up with more money at the end of a car loan.
Here's what happens at the end of a lease
The average lease contract lasts for 36 months, so when you're about 30 to 60 days away from the end of the lease, it's time to contact our dealership. You will submit your leased vehicle for an inspection to determine whether it has sustained any excess wear and tear or damage above what your lease contract allows.
In addition, you will have to pay for any excess miles beyond what's permitted by the lease agreement. Once you pay for all lease-end charges, you will return that vehicle to us.
Your options at the end of a lease
When you reach the end of your lease contract, you will have several lease return options. One is to move away from leasing and buy your next new or pre-owned vehicle with a loan. Not only will you be building cash value, but you can eventually own that vehicle, which means you can eliminate monthly car payments.
Another option is to buy the car, truck, or SUV you've been leasing. The third option is to sign up for another lease and drive home to Urbana, OH with a brand-new vehicle. We can tell you more about how leasing works when you talk with a finance specialist at Jeff Wyler Chrysler Dodge Jeep Ram of Springfield, OH.
