Buying vs. Leasing

Let's say you've been browsing our new Chrysler, Dodge, Jeep, RAM inventory, and you've found the perfect car. But you can't help but ask yourself if it's smart to get a car loan or lease with your new vehicle. If that's a question on your mind, don't fret. Both leasing and loans have their own unique benefits. Since helping our customers make informed decisions about their purchase, we'll break it down for you.

What's the difference?
The difference between a car loan and a lease is what you pay for. If you get a car loan from our finance center, you'll be responsible for a down payment, the car's entire MSRP, and any interest included in the agreement. A leased agreement, however, is a bit different. Instead of being responsible for the entire MSRP of a vehicle, lessees only have to pay the residual value of a vehicle that eclipses during the stipulated lease period.

Say, for example, you want to buy a Jeep Renegade with an MSRP of $24,000. With a loan, you would have to pay the whole MSRP over a 72-month span, with interest. However, if you opt for a lease, your payments would not only be different, but also lower. You learn that $8,000 in residual value will be lost over the course of your 36-month lease. So your monthly payments will reflect that, plus interest.

Is a loan right for me? Or a lease?
Choosing between a loan and a lease can be as easy as figuring out what's more important. Those who opt for a loan are usually those who prefer the pride of car ownership-owning their vehicle for thousands of odometer miles before opting for a new one. Lessees, on the other hand, are usually those who prefer lower monthly payments and switching vehicles every 2-4 years. Plus, those who lease also get the benefit of lower payments on maintenance, routine or serious.

Want to learn more about whether buying or leasing your next car is best? Just contact our San Fernando, CA dealership. We'd be more than happy to assist you in any way we can.