Buy vs. Lease: The Pros and Cons
The terminology may confuse some, but buying and leasing mean two different things for those in the market for a new Volvo in Bend. Each has its advantages, so we're going to list a few of the reasons why buying might be a good bet for you. If you have any questions, visit our location at 20630 Grandview Drive or call us.
- Leasing a car is similar to financing in many ways, but there are some key differences. When you are purchasing a car, the loan value is based on the entire cost of the vehicle, minus your down payment and trade-in value. When leasing, however, you're only financing the depreciation that occurs during the lease term (most commonly three years), plus fees. At the end of the lease term, you simply return the car to the dealership. Leases are a good way to have a predictable total cost of ownership. Many leases last about three years, or the length of a typical factory warranty.
- If you tend to keep your vehicle for a long time, buying is probably a better option for you than leasing. When you buy, you own the car outright when the loan is paid off (though until then, the lender owns the vehicle). Throughout the length of the loan, you gain equity in the car as long as your payments outpace the depreciation of the vehicle. At the end of the loan, the car belongs to you, and your lender will transfer its title to you. Other than the basic costs of ownership - gas, insurance, repairs, etc. - you won't have to figure any car payments into your budget. Another huge benefit is the lack of a mileage restriction.
For our Bend, Redmond, Sisters, and Powell Butte customers interested in learning more, we suggest you visit us here at SmolichVolvo and let us answer your questions. We are here to provide you with an exceptional buying or leasing experience, so let us show you what great customer service looks like.
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