Lease vs Buy - Which is Best for You?

Leasing vs. Buying Your Next Ride Near Worcester, MA

At Planet Chrysler Jeep Dodge Ram, we want your car lease vs. buy experience to go smoother than ever before. This is an important decision to make, so we want to provide all the information we can to ensure you make the right choice. Our professionals are always here and ready to help you through this process. Visit our dealership in Franklin, MA, today to get started!

The Differences Between Leasing and Buying

Leasing is a great choice for customers that live in downtown Worcester, MA, or who need a ride for special trips to Attleboro, MA. This is due to the standard mileage limits that come with most leasing agreements. Whether you are looking for a truck or car lease, you will have to make sure that you can manage to stay within those monthly limits.

Buying your next car or SUV means that you are paying the full price of your vehicle. This leads to higher monthly payments than standard SUV lease agreements. With this financial choice, you won't have to worry about the mileage limits. You just have to make sure it fits your budget.

High Level Buy vs. Lease

What, exactly, are the financial transactions for buying vs. Leasing? We've tried to break it down for you:  

 When you get a $20,000 loan, the bank pays
us $20,000 for your car and keeps your title
until you pay off the entire $20,000, plus interest.
 
When you lease, the bank also pays us $20,000, and keeps the title. What's the difference? With a loan, the bank wants back 100% of the $20,000, plus interest. With a lease, the bank only wants you to pay $8000 plus interest (the difference between $20,000 and the residual of $12,000. The "residual" is the pre-determined value of the lease vehicle after 36 months).

 

Perks of a Lease

Car or truck lease options can bring drivers a solid range of benefits. These perks can satisfy both your wallet and your driving needs, making leasing perfect for some Boston, MA, customers. Some of these exciting benefits include:

  • Lower Monthly Payments
  • More Ability to Upgrade to a New Model
  • Less Responsibility for Maintenance and Repair

Perks of Buying

Buying your next car or SUV also brings some benefits that Providence, RI, customers love. One of the main perks of buying your vehicle is starting the path to ownership. This adds equity to your investment, which is never a bad thing to have. Also, you will have more freedom over driving patterns. If you are looking for a daily commuter, you may want to buy it.


Common Misconceptions about Leasing

"With a lease, I don't own anything."

When you take out a loan, do you get the title? Not until you pay off the whole amount. So you don't really "own" it til it's paid off. A lease is the same way. The bank retains the title and if you want to own the car you just pay off the lease.

"With a loan, I own the car at the end."

True. But not much of a car…a five year old car with higher miles. If the lease saves you $120 a month for the term of a 60 month loan, that's $7,200 that you have in your pocket instead of your car. (And that's assuming you didn't make some additional interest on it by investing it or putting it in the bank.)

"It's better to own than rent."

The reason you should buy a house instead of rent is because the house usually appreciates (or at least they did before the financial crisis). But cars depreciate. And they have significant costs. Most people who lease never pay for brakes or tires, for example, because they don't keep the car long enough to wear them out. If you finance your car for five years, you'll almost certainly need tires and brakes at least once, plus other repairs.

"The dealer makes more money when I lease."

This is true, but not in the way that you would think. Whether you buy or lease at Planet, you pay the same price for the car. However, we do sell more cars overall because research shows that lease customers are more likely to become customers for life (and why wouldn't they? They're always driving a newer, safer, more reliable car for a smaller payment!)

"I can't trade the car in before lease end."

Actually, you can. After driving your car for 30 months, don't you think it's less expensive to get out of a 36 month lease that's almost up rather than a 60 month loan that's only half paid? Approximately 40% of people owe more on their loans than their cars are worth-not only do they not have equity, they are actually "upside down."

"I don't want a new car every few years. I like to buy new, pay the car off, and then have the car without a payment."

While you may not have a payment in those out years, there are still costs. You'll be spending more in repairs to keep an older car on the road, older cars use more gas and pollute the environment more, have fewer safety features than modern cars, and are more likely to break down and leave you in a dangerous situation.

"I drive too many miles."

Cars depreciate about 25 cents per mile. Yet with a lease, you can buy additional miles upfront for only 10 cents. At the end, if you go over, they're only 15 cents. People who put a lot of miles on financed cars usually end up owing more than they are worth-not only do you not own your car, it owns you!

"I had a bad experience with a lease because I drove over the miles and I had to write a big check at the end."

If you had financed the car instead, don't you think that piling on extra miles would have substantially reduced the value of the car at trade in time? Cars depreciate about 25 cents per mile but they only cost 15 cents on a lease if you go over. If you buy them up front, they're only 10 cents! So if you're concerned about driving a lot of miles, we'll build them into the lease for you. Either way, you're better off putting too many miles on somebody else's car!

"I had a bad experience with a lease because I had to pay for damage at the end."

People who trade in financed cars with damage have to pay too-because they get less at trade-in time. You don't get a bill in the mail for it, but you still pay it. Furthermore, our experience with lease returns is that the inspectors are pretty lenient about minor damage because they want you to get another lease.


Whether You Buy or Lease, You'll Want to Work with Planet Chrysler Dodge Jeep Ram

When you choose our dealership near Norwood, MA, you will find some serious advantages that are hard to match. From impressive options to quality care, we aim to be the best choice in the area. Customers from here to Boston, MA, choose us due to these impressive qualities, and you should too.

A Range of Exciting New Models

Our new inventory is large and can meet the needs of just about any driver. We carry some of the most exciting models from beloved brands like Jeep and Ram. If you are looking for an SUV lease that gets you in a ride ready for adventure, try one of our Jeep Grand Cherokee deals. The new Jeep Wrangler can also be found in this lineup. For years, this model has been serving customers in the Mendon, MA, area, and this new model year extends that reputation.

We also have impressive work trucks like the Ram 1500. Whether you need a truck to conquer daily jobs or haul your boat to the lake, this Ram is ready to handle it. The only thing that makes this model more exciting is the impressive truck lease deals we offer.

Professional Help at Every Step

Regardless of the model you want or if you are looking to buy/lease, you will have expert care the whole way through. Our professionals take their job very seriously, and that leads to an excellent experience every time. From answering any and every question to getting you in the car of your dreams, you can count on us to do it all!

Got Questions? Reach Out!

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  1. Planet Chrysler Jeep Dodge Ram

    400 E Central St
    Franklin, MA 02038-1305

    • Sales: 8447614001
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Get in Touch

  • Contact our Sales Department at: 8447614001
  • Monday09:00AM - 07:00PM
  • Tuesday09:00AM - 07:00PM
  • Wednesday09:00AM - 07:00PM
  • Thursday09:00AM - 07:00PM
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  • Saturday09:00AM - 05:00PM
  • Sunday12:00PM - 04:00PM