Leasing vs Buying: Know Before You Go

 

Leasing vs Buying: Know Before You Go

Deciding whether to lease or buy your next luxury car can be a tough decision to make. This is especially true if you have not personally experienced one of these options, or if you are unsure of their fundamental differences. While taking out a Volvo lease may make sense for your friend or neighbor, the better choice for you may be to buy a new Volvo outright. Just as no two people are alike, neither are their financial circumstances or preferences of vehicle ownership. In an effort to help clear the air, and clarify some of the confusion that surrounds leasing vs buying, we have created a list of things you should know, before you go down to a dealership.

Leasing Luxury

One of the major benefits of leasing a vehicle is that you can update your car as frequently as you desire. When you buy a new car, you are not only tied to the monthly payments associated with ownership, but you are essentially stuck driving that car until you can pay it off, and eventually sell it. When you head to a dealership for a luxury Volvo lease, for example, you are able to set the terms that make the most sense for your own personal lifestyle. If you prefer to drive the newest and best vehicle on the market, then a short term lease option would be perfect. Because of the more frequent turnover rate associated with leasing rather than buying, drivers in the luxury vehicle market are more inclined to choose a great lease option that allows them to drive the newest models from their favorite brand’s lineup.

Leasing a car from a mainstream automotive brand is possible, but buyers in the luxury market are able to take greater advantage of all that a lease has to offer. Finding exceptional Volvo lease specials can end up saving car shoppers thousands over taking the traditional route to vehicle ownership.

Leasing vs Buying: The Good, the Bad, and the Ugly

Now that you know the most fundamental benefit of leasing a vehicle, let’s take a deeper look into what differentiates a Volvo lease from financing the same luxury vehicle to purchase.

     
  • Leasing: When you obtain a Volvo lease from a certified dealership, you are essentially borrowing the car for an extended period of time. While you are not the owner of the vehicle, it is generally yours to do with what you please. This is true to a certain extent, but it is imperative that you pay careful attention to the terms of your lease agreement, prior to signing any paperwork.   
           
    • Trading In, Trading Up – When you lease a Volvo brand vehicle, you are able to more easily stay on top of the latest models and industry trends. Most lease agreements will allow lessees to upgrade their vehicle prior to the end of their contract, if a newer model replaces their existing car. On the opposite end of the spectrum, drivers who opt for a lease will typically be given the option to buy the vehicle when their contract expires, if they feel so inclined. Usually a percentage of the payments made during the lease term will be applied to the final cost of the vehicle, giving buyers a major jump start.
    •      
    • Restrictions – Every vehicle lease comes with a set of guidelines that lessees are expected to follow. These restrictions can vary greatly, depending on which vehicle you choose, and from what dealership you sign the lease agreement with. The most common lease restrictions are annual mileage allotments, and wear and tear guidelines. If you plan to utilize your leased vehicle for longer trips, then it is especially important that you understand any potential restrictions, so that you can avoid any end of lease financial penalties.
    •      
    • Up-Front Costs – A typical Volvo lease requires that a security deposit, an acquisition fee, and the first month’s payment is due at the time of signing. Unlike buying a car, a lease does not require a down payment of any kind, which can end up saving drivers thousands right from the start.
    •    
  • Buying: Choosing to buy a vehicle entitles you to more of an ownership status; leasing does not. Even if you take out a loan from a financial institution in order to cover the cost of the vehicle, you are still considered the owner of the car. This is a major point of pride for some drivers, and a major headache for others.   
           
    • Stuck Together – Buying a vehicle means that you are not only the owner, but are responsible for maintaining and keeping the car in exceptional condition in the event that you choose to sell it down the line. When you buy a car, you are responsible for making monthly payments to a bank, and until you are able to pay off the car in question, you will be stuck with it. Once you pay off the car in full, you will be able to trade it in to a dealership, or sell it outright. While having the option to turn your car into cash may seem great, just remember – vehicle depreciation is a very real, and a very eye-opening part of owning a car. If you prefer to frequently upgrade the car you are driving, then leasing may be your best option.
    •      
    • Up-Front Costs – When you buy a car, you will be responsible for a down payment that is due at the time you sign for your new car. The amount of your monthly payments will be calculated based on your credit score, if you choose to finance through a bank. Drivers are also responsible for paying any vehicle registration and licensing fees, which vary depending on where you live in the United States.
    •    

Choosing One Over the Other

Deciding whether to lease or buy a vehicle is entirely your own personal decision to make. It is important to weigh the pros and cons of each option, in order to ensure that you are making the best possible decision. Finding a reputable dealership, like Smythe Volvo, is a great way for you to find out more about each option, and have all of your questions answered. Be sure to reach out, and learn more about great Volvo lease specials today.


Categories: New Inventory
; ;