Buy or Lease? What’s Best for Me?

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Here’s an example for buying or leasing a 2016 Chrysler Town and Country: 

To Buy: 
Terms: 60-month loan at 3.9%
$0 down              $549 + tax/fees
$1499 down       $519 + tax/fees
$2499 down        $499 + tax/fees

To Lease:
Terms: 39 months/10,000 miles lease agreement
$0 down              $399 + tax/fees
$1499 down        $369 + tax/fees
$2499 down        $339 + tax/fees

It’s an age old debate – should I buy or lease? You read a lot about which option is better … or maybe cheaper. But our experts say the buy or lease question hinges most on lifestyle, and it starts with just two questions.

1.   How many miles do you drive per year?
In most leases, you are allowed to drive only 10,000 to 15,000 miles per year – multiplied out for the life of the lease. If you drive more than allotted, you’ll likely pay for every mile over the limit – and that can really add up. On the other hand, if you drive significantly fewer miles than 10,000 to 12,000 per year, you may be able to negotiate a lower lease payment.

2.   How long do you generally keep your car?
Leasing is best for drivers who only want to keep a car for three or four years, and enjoy always having a new car. Remember, when you lease, you’ll always have a car payment.

So, if you drive a lot of miles, want to keep a car a long time or want to eventually be free of car payments, buying might be a better option than leasing.

Still unsure? Here are some more facts to consider:

Benefits of Buying:
•     At the end of the loan, you own the vehicle and will be payment-free.
•     While you are paying on the loan, you are building equity.
•     Generally, the length of a loan can be a longer term than with a lease.
•     Your insurance will likely be lower.
•     There are no mileage restrictions.
•     You can modify and customize your vehicle as you wish.

Benefits of Leasing:
•     Lease payments are generally lower than loan payments, because the lease is based only on a part of the car’s price.
•     You’ll have a new car every three to four years.
•     Your vehicle will likely be under warranty for the life of the lease.
•     You don’t have to worry about selling the car at the end of the lease.

The decision to buy or lease really depends on your personal circumstances. Think about your budget, driving needs and lifestyle before you make a decision. The advisors at Hayes Automotive are happy to discuss options with you!

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