Buy VS Lease
When it comes to obtaining a new vehicle, drivers have two options - buying a car or leasing one. Owning your own car has its benefits, but in some cases, leasing may be the more financially viable option or allow you to try out a vehicle you wouldn’t otherwise purchase. So, what’s the difference between the two? How do you decide which option fits you, your budget, and your lifestyle the best?
Buying
Purchasing a car is the better option if you’re looking to pay off your car and keep it as long as possible. You’ll have to either pay full price or take out a loan that you’ll be paying back over time, as well as paying interest. The plus side to this is that you’ll be building credit and equity over time as you pay off the loan, and in addition, there are no mileage restrictions or other negotiated terms to worry about beyond the loan.
Leasing
If you want to avoid taking out a loan or paying full price for a vehicle that you’re just going to trade back in in a few years, leasing might be the better option for you. Leasing works like this: you take the value of the car at the beginning of the lease term, subtract the predicted value for the end of the lease term, and pay the difference. For example, if a vehicle costs $20,000 when you lease it and has a value of $13,000 when the lease term ends, you will only be paying $8,000. However, leasing does come with restrictions on mileage and if you don’t keep up with maintenance, you could be paying extra fees.
Pros of Buying
No More Payments Once the Loan is Paid
Once you have paid off your loan, it’s all yours. The only costs related to your vehicle you’ll need to worry about after your payments are finished are insurance, fuel, and maintenance.
No Restrictions
Almost all lease agreements come with mileage restrictions. When you purchase a vehicle outright, you are free to use it as much as you want.
The Joy of Ownership
There is something special about being able to say that something is unequivocally yours. When you purchase a vehicle outright, you become the proud owner of a valuable asset.
Cons of Buying
High Price Tag
Buying a car will always take more from your wallet than leasing, though in the end you will have full possession of the vehicle rather than having to return it to the dealership.
Big Down Payment
Purchasing means putting a hefty sum down at the outset. Not every buyer is in the position to do so, which can make buying a new vehicle more difficult.
Pros of Leasing
Low Monthly Payments
Lease agreements almost always carry a lower monthly payment than a loan agreement for a purchased vehicle, though you will not own the vehicle outright at the end of a lease agreement.
Latest-and-Greatest
You can turn in your vehicle at the end of your lease and opt into a new vehicle—one that features the latest technologies.
Cons of Leasing
Fees and Restrictions
Lease agreements usually come with restrictions on mileage that require you to pay extra for every mile you drive over the limit. You may also be stuck with additional fees if the vehicle is returned with excess wear-and-tear.
Good Credit is Necessary
Most lease agreements require a good credit history, which might make leasing challenging if you’ve got bad credit.
When it comes down to it, whether you buy or lease your next vehicle depends entirely on your needs, lifestyle, and what you’re looking for. Stop by DeVoe Cadillac today if you have any questions.
Say Goodbye to Prepayment Penalties at DeVoe Cadillac
Many dealerships and lenders, including some Florida-based loan officers, charge their customers penalties for paying off their loans ahead of schedule – after all, the less time you borrow their money, the less interest they gain – but DeVoe Cadillac does not play by these rules. We encourage our patrons to pay down their auto loans at the pace they feel comfortable with, and if that means paying off your financed vehicle early, you'll get zero penalty from us.
That's right: Enjoy zero prepayment penalties when you finance your vehicle through DeVoe Cadillac. Our showroom and lot feature hundreds of elegant new Cadillac sedans and SUVs, including popular all-electric models like the LYRIQ and Escalade IQ, and they all come with no prepayment penalty. If you're searching for a new dealership to call home, give DeVoe Cadillac a try.
We can support you through the entire financing process and outline different ways to pay down your auto loan more quickly. Reach out to our finance department to explore prepayment options like making biweekly payments, rounding up your monthly payments, or making one extra payment per year. We love working with our customers to help them maximize their luxury Cadillacs.
HOURS OF OPERATION
| Sales | ||
| Day | Open | Closed |
| Monday | 9:00AM | 6:00PM |
| Tuesday | 9:00AM | 6:00PM |
| Wednesday | 9:00AM | 6:00PM |
| Thursday | 9:00AM | 6:00PM |
| Friday | 9:00AM | 6:00PM |
| Saturday | 9:00AM | 4:00PM |
| Sunday | Closed | Closed |
| Service | ||
| Day | Open | Closed |
| Monday | 7:30AM | 6:00PM |
| Tuesday | 7:30AM | 6:00PM |
| Wednesday | 7:30AM | 6:00PM |
| Thursday | 7:30AM | 6:00PM |
| Friday | 7:30AM | 6:00PM |
| Saturday | 8:00AM | 3:00PM |
| Sunday | Closed | Closed |
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