Buying vs Leasing a Car in Florida

Buying vs Leasing a Car in Florida

Buying vs. Leasing a Car in Florida

When you need a vehicle to get around, you have two basic options: buying one or leasing one. Deciding between buying and leasing a car is often a tough call. On the one hand, buying involves higher monthly costs, but you own the vehicle in the end. On the other hand, a lease has lower monthly payments and lets you drive a car that may be more expensive than you could afford to buy. The honest answer is which is best for you. Keep reading to learn the advantages of leasing and financing your next vehicle purchase.

What is an Auto Lease?

If you are unaware of what it means to lease a vehicle, you may have missed out. When you lease a car, it is similar to renting an apartment in that you make monthly payments while enjoying temporary use of the vehicle. A lease may be an attractive option if you’re not interested in owning a car right now or you prefer to drive newer vehicles. With a lease, buyers make a monthly payment to drive a new car for a set term. That payment is often less than the monthly cost of financing a new vehicle as you are just borrowing and repaying the difference between the car’s value when new and the car’s residual. A car’s residual value is the expected value when the lease ends.

Advantages of Leasing

You drive it during its most trouble-free years when you lease a vehicle. You’re always driving a late-model car usually covered by the manufacturer’s new-car warranty. Plus, most leases include free oil changes and other scheduled maintenance. As a result, you can drive a higher-priced, better-equipped vehicle than you might otherwise be able to afford. In addition, you don’t have to worry about your car’s trade-in value or go through the hassle of selling it when it’s time to move on. Plus, there could be significant tax advantages for business owners.

What does it mean to finance a car?

While most people would love to be able to pay for a car with cash at the time of purchase, borrowing money is a common requirement for most buyers. When financing with a conventional auto loan, it’s pretty straightforward. You borrow money from a lending institution and make monthly payments for a set number of years. With every payment you make, a portion of it goes toward paying interest on the loan, and the rest is used to pay down the principal. As you repay the principal, you build equity, and at the end of the loan, the car is all yours. However, you can keep the vehicle as long as you like and treat it however you like.

Advantages of Auto Loans

A car loan is a more traditional way to purchase a vehicle, and it’s the most straightforward way to proceed most of the time. When you finance a car, you are building equity in the vehicle. Even if you have poor credit, you’re likely still able to obtain an auto loan. The great thing about car payments is that they help your credit history as long as you stay on top of payment deadlines. Once you have paid off the loan, that’s it, the car is yours, and there are no more payments. After the payments are completed, you can sell the vehicle or trade it in for a new one. You can modify the car any way you like as the vehicle is yours.

Trustworthy Auto Financing Near Me

If you want to learn more about leasing and financing a vehicle and live in Flordia, Warren Henry Auto Group is for you. We have 13 different auto manufacturers under our roof, so we know we will find the perfect vehicle for your needs. Plus, our sales members treat the needs of every customer with paramount concern. We know that you have high expectations, and as car dealers, we enjoy the challenge of meeting and exceeding those standards each time. We encourage you to browse our online inventory, schedule a test drive and investigate financing options.

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