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When you go to look for a new or used car, there are always the questions of how you will pay for it, how much you can afford, and how much you want to spend. These can be deciding factors in buying a car. But what about leasing a car? Is that a better financial deal? What is the difference between buying a car and leasing one?

Shelton Used Cars in Woodlawn near Mount Vernon offers the best used cars. Our certified pre-owned vehicles can help you get to where you need to go. In addition, we also offer used car automotive parts for when you need a new set of windshield wipers or you want to switch out your brake pads. Below, we’ll examine the difference between a car loan and a car lease. Stop by our used car dealership today!

DIFFERENCE BETWEEN A CAR LOAN AND A CAR LEASE

The main difference between buying a car and leasing a car is the loan involved. When you purchase a car with financing, you obtain a loan from a financial institution for the full amount of the car that you then pay back over a certain term until you own the car. With a car lease, you are paying a fixed payment every month for the privilege of driving the car; you do not own it, although the leasing company may give you a right to purchase the vehicle after the lease term is up. Other differences to consider include:

• When you buy a car, you can keep it as long as you want. When you lease a car, you have to give it up at the end of the term, or opt to purchase it if allowed.
• Costs can be similar when you add in all of the fees. When you buy a car, you have taxes, registration, and down payment. When you lease a car, you have the first month’s payment, security deposit, taxes, and registration.
• When you lease a car, your monthly payment will always be lower, which is the main draw of car leases for many people. You’re only paying for the depreciation value plus interest. When you buy a car, you are paying off the entire cost of the car plus interest as well.
• When you buy a car, you can sell it at any time with no repercussions. When you lease a car, if you break the terms of the agreement, steep penalties apply.
• When you buy a car, you have to sell it or trade it when you want another one. When you lease a car, you turn in the car and walk away.
• When you buy a car, you have the value it is worth. When you lease a car, you have no equity in the car at all.
• Car leases carry mileage limits. When you buy a car, you can drive it as much as you want, so those trips to Grandma’s house across the country are worry-free.
• Car leases ensure you don’t have excessive wear and tear on the vehicle. If you do, you buy. When you buy a car, you pay no matter what for repairs and maintenance.
• You cannot customize a leased car; you can customize a car you own.
• You own a car you purchase; you don’t own anything when you lease a car.

The main difference is the level of responsibility as well. When you buy a car, you are 100% responsible for it. When you lease a car, you are only using it for a certain period of time and then you give it back.

SHELTON USED CARS IN WOODLAWN

Shelton Used Cars in Woodlawn near Mount Vernon offers certified pre-owned vehicles for your purchase. We offer in-house financing options, meaning when you buy here, you pay here. You don’t have to go through a financial institution to obtain a car loan. Our family-owned used car dealership has been providing used car parts to Woodlawn for over 40 years. We love helping people fix their vehicles and get them into a newer, used car as well. We purposely keep our used car inventory small so that we can offer you the best used cars around. Call the used car dealership you can trust today!