Leasing vs Buying
Leasing vs. Buying a Car in Freeland, MI
Once you’ve found your perfect car, truck, or SUV, let McDonald Ford in Freeland, MI, help you bring it home with a lease arrangement or finance plan that meets your needs.
Learn the pros and cons of car buying and car leasing, and talk with our finance team at (866) 960-8749 if you have any questions or are ready to start the loan or leasing process. Make sure you also check out our current lease and finance offers for a great opportunity on your favorite model.
Car Leasing
Leasing can be a convenient option if you enjoy driving a new vehicle every couple of years. With a lease, you often are afforded added flexibility, such as purchasing the vehicle or trading it in prior to lease end.
Ask us about these options before you sign any paperwork, and we’ll be happy to set up your lease the way you want it.
Still have questions?
Call A SpecialistPros of Leasing a Car
Affordability
Drive a model and trim you love when you choose a lease option. Your monthly payments will generally be lower than the monthly payments you would have with a purchase finance, and you typically are not required to provide a down payment.
Like a purchase, if you want to owe less per month you can always choose to pay more upfront.
Always in a New Vehicle
If you enjoy a new car every couple of years, leasing can be an ideal, financially prudent option for you.
Fewer Repair Costs
Each time you lease a new vehicle, it is covered under an original factory warranty throughout your lease period. While a purchased vehicle is also covered by a factory warranty, when it expires you are responsible for any repair costs you incur.
Ease of Trade-In
When your lease term is up, you simply return the vehicle — or exercise your right to purchase it for the residual value specified in your lease agreement.
Cons of Leasing a Car
Mileage Restrictions
Your lease agreement includes language regarding mileage limits; if you exceed them, you may incur additional fees that are due when you turn in your vehicle.
Wear & Tear Costs
Your leased vehicle comes with wear and tear guidelines; if you exceed them, you may be responsible for repair costs when you turn in your vehicle.
You Do Not Own the Vehicle
With a lease, you’re buying the right to drive a vehicle that you don’t own for a specified period of time.
Car Buying
Whether you pay cash or finance your new vehicle over time, it’s yours. You build equity while you finance it and own the vehicle and the market value when it is paid off.
You’ll have obligations to meet should you choose to finance — such as the down payment amount and monthly payment schedule. If you don’t meet your loan obligations, the lender has the right to repossess your vehicle.
The down payment amount is usually based on the lender's requirements and your credit score.
Still have questions?
Call A SpecialistPros of Buying a Car
Equity
Once you’ve paid off your loan and received a lien release from the lender, you now own the vehicle free and clear. The better you maintain it, the higher the future value you can expect when it’s time to sell or trade it in.
No Mileage Restrictions
You do not have limits on the amount of miles you drive during your loan period.
No Appearance Restrictions
You can add accessories or custom features while you are paying off the loan. If you damage your vehicle during the loan period, be aware that you are responsible for collision and repair costs.
Vehicle Trade-In Value
Keep up with maintenance and repair work from a factory-authorized facility. Used car buyers today have access to vehicle history reports and maintenance and repair data. Transparency and good car care make a difference when you sell it or trade it in.
Cons of Buying a Car
Depreciation
The rate of depreciation against your vehicle’s value is highest in the first couple years of car ownership.
Higher Payments
Car loan payments reflect the entire cost of the vehicle, whereas a lease payment reflects the depreciating value.
Length of Time to Financially Benefit
This will vary, depending on how much you pay for the vehicle, if and how long you finance it, how long you keep it, and what the market value is when it’s time to sell or trade it in.
Added Repair Costs
When you purchase a vehicle outright or finance it over time, after the warranties expire you are responsible for repair and replacement costs.
Which Option is Right for Me?
Perhaps you prefer to purchase your vehicles, or maybe this time around you’re considering a less temporary arrangement with a brand new model or engine type. Weigh the pros and cons and choose the option that is best for you at this point in time.
Let’s Get Started!
Access a variety of helpful tools next to the vehicle that interests you in our new or used inventory. If you’d like to pre-qualify for credit and begin the process online, simply fill out and submit our secure, online credit application to get pre-approved.