Deciding Between a Car Loan and a Car Lease
Now that we know the difference between a car loan and a car lease from our last blog post, how do you decide which one is right for you?
Shelton Used Cars offers the best used cars in Woodlawn near Mount Vernon. Our certified pre-owned vehicles are meticulously inspected to ensure they are reliable, functional, and safe. We only carry used cars that can pass our high standards for performance. This is because we always put the customer first in all that we do. Below, we’ll take a look at how to decide between a car loan and a car lease. Browse our used car inventory online today!
HOW TO DECIDE BETWEEN A CAR LOAN AND A CAR LEASE
Deciding between a car loan and a car lease is really up to you. Everyone’s situation and needs are different so the trick is matching your needs to which option will get you the better deal and cost the least amount of money in the long run. We’ve discussed the fundamental differences in buying a car versus leasing a car. Here, Shelton Used Cars in Woodlawn will give you the advantages and some possible scenarios in order to help you make the right decision for you.
BENEFITS OF LEASING A VEHICLE
Lower Monthly Payments
Lower monthly payments is the biggest advantage to leasing a vehicle. Plus, you can get a nicer vehicle for the same monthly payment as a cheaper vehicle if you were to purchase it instead. There is little to no down payment and you avoid sales tax. This is great for those on a strict budget and who just need a vehicle to drive around.
Easier to Get a New Car
The nice thing about leasing a vehicle is that the terms are usually only two or three years long. This allows you to, in effect, test drive a car for a few years to see if you like it. On the other hand, if you were to purchase the same vehicle and you didn’t like it, you’d be stuck with it for at least five years or more until you paid it off. Thus, once your lease is up, you can either enter a new lease or purchase a vehicle.
Furthermore, due to the fact that you have to trade in every two to three years, you can always have the latest in car technology, gadgets, and safety standards. Thus, if you are one who likes to have all the bells and whistles and like to trade in a car after only two to three years anyways, then leasing is for you. You’ll save on depreciation costs and constantly have a new car.
Can Have Less-Than-Stellar Credit
It’s easier to lease a car with poor credit than it is to buy a car. Car leasing companies are usually less stringent than when you buy a car because it’s easy for them to take the car back if you miss a payment or violate the lease terms. This is also a good option for those with little credit history but need a vehicle fast.
BENEFITS OF BUYING A VEHICLE
No Limitations
Once you drive off the used car dealership lot having signed the papers, the vehicle is yours. This means if you want to paint it pink or purple, you are free to. If you want to add a lift kit to your pickup truck, you can. If you want to take a cross-country trip for a month, there are no mileage limits. Once you pay it off, it’s yours to keep till you decide to sell it.
You Can Repair Your Vehicle On Your Own Terms
Let’s face it, a vehicle usually gets bumps, scrapes, and scratches over its lifetime. You can accidentally back into a telephone pole, a hail storm can come through, or you can collide with a shopping cart, scratching up one whole side of your car. With a leased vehicle, you are liable for these damages. With a car you own, you can choose to have them repaired or not. While your car insurance will pay for the damages, you will have to pay your deductible and your insurance will go up when you put in a claim, making getting a few scratches fixed not worth the extra cost in the long run.
You Are Building Equity
You can compare buying a car and leasing a car to buying a home versus renting a home. When you purchase a car, you will be building value for later use, such as when you trade your car in. Also, once you pay off your car, you can sell your car and keep the money as well for use in other life’s wants and needs. In essence, when you buy a car, you will not only be paying less over the long run, but if you keep the car long enough, you will get some of that value back.
CHOOSE SHELTON USED CARS IN WOODLAWN FOR YOUR NEXT CAR
Shelton Used Cars in Woodlawn near Mount Vernon offers the best selection of certified pre-owned vehicles. We make sure everything works on our cars, that they are all up to safety standards, and any recall repairs have been made. We value our clients so the cars we sell will always be top-notch. We also want to make sure you are 100% satisfied, which is why we never pressure anyone to buy a car that they are unsure about.
Shelton Used Cars offers in-house financing, utilizing our buy here, pay here system. This means that we don’t sell your loan to a financial institution. Instead, we carry your financing, so you can either pay here in person or easily online. Our family-owned business has been serving the residents of Woodlawn for over 40 years, primarily with used automotive parts and service and now with the best used cars around. We are excited to serve you today and for the next 40 years. Stop by today to check out our used car inventory, and test drive today!
