Buying vs. Leasing

Wondering if you are better off buying your new vehicle or leasing it? Below, we break down what each option entails and explain the benefits both choices offer you.

Drivers in Huntsville, Florence, and Cullman, AL, who have any other questions when it comes to financing a new car can stop by and chat with our experts here at Century Automotive.

Buying a Car

-        Ownership: When you buy a car, you are doing so with the goal of having complete ownership of the vehicle. With the help of our finance team, you be able to secure an auto loan for your vehicle, so you can pay it off incrementally. Once you have finished payments, the car is yours, and you can continue to drive it for as long as you want.

-        Up-Front Costs: When buying your car, you will first need to pay a down payment. This is usually a percentage of the car, which depends on the lender's request and your credit. The remaining value of the car is what they will loan you and have you repay in monthly payments.

-        Payments: Like we mentioned, you will be paying your auto loan off one month at a time. After your car is completely paid off, you can do whatever you like with it. You have the option to continue to drive it with the benefit of no more payments-or even sell it. You are able to also add any accessories you would like to get for your car.

Leasing a Car

-        Ownership: When you lease a car, you essentially are renting it for a time period. Because of this, you don't own the vehicle. It instead is owned by the financial institution that you are leasing it through.

-        Up-Front Costs: It is common that you won't need to put a down payment on a car when choosing to lease. You usually just have to pay a deposit, the first payment, and possible other fees when you begin your lease.

-        Payments: Monthly payments are also usually lower when leasing a car. This is because you are just paying for the deprecation of the vehicle during the time you are driving it. Although lower than buying a vehicle, these payments don't come to an eventual end. At the time you lease finishes, you can either begin a new lease or buy the vehicle you have been leasing if you would like to continue driving it.

Recap of Buying vs Leasing a Car

Overall, there are some key differences between buying and leasing a vehicle that may help you decide which option is personally best for you. When buying a car, the benefit of getting to own the car is a big plus. This gives you freedom to make changes to the vehicle or even eventually sell it. Buying a car also means monthly payments eventually end, and you can drive it for as many miles as you like.

Leasing a car gives you some extra flexibility, both financially and in the short-term. Since costs are usually lower with a lease, you may be able to budget for a certain model or higher trim level. You also get to upgrade your vehicle every few years. This means getting to enjoy all the latest technologies that continue to get added to newer models.

Either way, our finance team here at Century Automotive can help drivers in Huntsville, Florence, and Cullman, AL, when it comes time to personally finance a new car. Stop by today to get started on buying or leasing your new vehicle!