Should I Lease or Finance My New Car?
Here at Sherry Chrysler, we believe in giving you the financial options you need to get the vehicle of your dreams, which is why we offer both financing and leasing packages for many of our cars, SUVs and pickup trucks.
In this article, we’ll break down exactly what leasing a car, or buying one on finance, actually means and what the benefits are of each option, so you have the information you need to make the right decision.
What Is Car Leasing?
The best way to think of a car lease is that it is like renting a car, but instead of paying money upfront for the rental period, you pay equal monthly payments until you reach the end of your lease.
Once your lease is up, you have to return the car to the dealer. Depending on the terms of your particular contract, you may then have the option to pay a lump sum to buy the vehicle outright.
Car leases generally have terms of two to four years and, depending on the specific terms of your contract, you may be limited to a certain number of miles you are allowed to drive. This mileage limit is usually between 10,000 and 15,000 miles a year but higher limits are obtainable.
What Are the Benefits of Leasing a Car?
- As a rule, the monthly payments on a leased car are lower than those of auto loans used to buy a new car. You also don’t need to have a lump sum payment available upfront, which you would if you just wanted to buy a new vehicle outright.
- Leased cars generally include service contracts that make getting maintenance and repairs conducted on your vehicle easier and more convenient. Ideal if you want a car to drive but don’t want the hassle of owning one.
- If you prefer to drive new cars, leasing a vehicle will allow you to pick up another new vehicle to lease each time your contract ends, without going to the trouble of selling a used vehicle every time you want something new.
- If you only need a particular vehicle for a short period, or are only living in a specific area for a short time, leasing a car often makes more sense than buying one and having to sell it later.
What Is Car Financing?
Car financing involves taking out an auto loan in order to cover the price of the vehicle you want to buy. Most auto loans require you to have good credit, make a cash deposit at the beginning of the loan, and make monthly payments after that.
However, here at Sherry Chrysler, we don’t believe that bad credit should stand between you and the car you need. Which is why we specialize in loan approval.
We have close working relationships with national banks, local credit unions, and specialist banks that work exclusively with sub-prime automotive loans.
Because our prices are generally well below the “book value” we can work with those banks to get you the best rates possible, regardless of what your current credit situation is.
We also offer guaranteed financing for drivers in Ohio with a less than perfect credit record.
What Are the Benefits of Buying a Car on Finance?
- You don’t need to pay the full value of the car upfront, you just need a deposit and the ability to afford the monthly repayments.
- If you finance is approved, you can drive your new car away on the day, or have it delivered by us.
- Because you do not have to pay for you new car in one lump sum, using car finance gives you the option to choose a more expensive, higher quality, car.
- Buying a new car on finance gives you the option to keep you cash saving, giving you increased financial stability while still allowing you to purchase a new vehicle.
Sherry Chrysler Is Here to Help
Here at Sherry Chrysler, we want to make the path to your new car as simple and easy as possible, so if you have any questions, or want more information on our finance and leasing packages, just call us on 937-778-0830, or come and visit our dedicated and helpful finance team at the showroom, located at 8645 North County Road 25A, Piqua, Ohio 45356.