Buying vs. Leasing

Buying vs. Leasing | Creston, IA

There are two main ways to acquire a car: buying or leasing. Most car shoppers are familiar with the buying process, where you submit a down payment and then finance through a lender in order to purchase your car. Leasing is another great way to get a car and it’s become especially popular in the past few years.

Buying

Buying is a great option for car shoppers who can afford larger monthly payments and a reasonable down payment. For instance, most lenders suggest paying about 10 to 20% of the car’s sticker price as a down payment. For the average new car—which costs about $33,000—that means the average down payment is nearly $5,000. However, despite the large down payment and the higher monthly costs, you get investment equity in the car and get to keep it once you’ve paid the entirety of the loan.

Leasing

Leasing is great for those who want lower monthly payments or drivers who want to upgrade to a luxury or performance model they usually can’t afford. Many individuals on fixed incomes—retirees, recent grads, or people with disabilities—may find leasing more manageable. Much like renting a home, you pay little to nothing down and monthly payments are smaller. However, leases often come with mileage restrictions and you have to give the car back when the contract expires.

For car shoppers who may not have the best credit, leasing may be a better option until your credit rises. Then, once you get your finances in better shape, you can commit to long-term financing.

Visit Stalker Chevrolet GMC today if you have any additional questions about financing. We offer a no-obligation car loan, which lets you shop around for the best rates possible before you commit to anything long-term. Whether you’re buying or leasing, you’re bound to find the car that’s right for you when you visit our dealership.