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BUY VS LEASE

Diehl Kia of Massillon

 

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Differences of Buying vs Leasing a Vehicle in Massillon, OH

 

Buying vs. Leasing Cars in Massillon, OH

 

The options can be confusing when it comes to buying or leasing a car. We've have provided the information below to help you make an informed decision. We hope it's informative and useful to you. When you buy a new or used car, you pay for the entire cost of the vehicle. When you lease a new or used car, you're paying for only a portion of the vehicle’s cost: the part you use during the time you drive it.

WHO OWNS IT?

BUYING

 

If you pay for the car with cash or finance it while making monthly payments, either way, it’s yours. Of course, if you’re financing it, you’ll have to meet your lender's obligations, such as a certain amount as a down payment and then timely monthly payments. If you don’t, they have the right to repossess it.

LEASING

 

You do not own the car when you lease. You’re paying for the use of the vehicle, and the finance institution that you leased it through actually owns it. This is usually why you pay less per month in a lease than if you were to buy the car.

UPFRONT COSTS

BUYING

 

If you’re financing it, the bank will probably request a down payment. You can also trade-in another vehicle and use any equity towards your down payment. The amount of the down payment is usually based on the lender’s requirements and your credit score.

LEASING

 

Leases often do not require any type of a down payment. All you have to pay usually is the first month’s payment, a security deposit, the acquisition fee, and other fees and taxes. As with a purchase, however, if you want to lower your monthly payments you can always pay more upfront.

FUTURE VALUE

BUYING

 

Your vehicle will be worth whatever you can sell it for in the future, which depends on how well you maintain it. (Be smart and protect your investment with regularly scheduled maintenance by a factory-authorized facility!)

LEASING

 

In most leases, you don’t end up owning it so you don’t end up selling it. That’s the financial institution’s job. You may have mileage limits and wear and tear guidelines as part of your lease agreement that, if you exceed them, could cost you extra money when you turn your vehicle back in.

END OF PAYMENTS

BUYING

 

Once you’ve paid off what you owe on your contract, that’s it. Your vehicle is 100% yours. Your lending institution will send you a Lien Release as proof that the vehicle is completely paid off and is now all yours.

LEASING

 

Most people return the vehicle at the end of the lease term; but, some like to purchase it either during their lease or at the end. Others like to trade it in before their lease is over. Feel free to ask us about these different options before signing any paperwork and we’ll make sure you have your lease set up the way you want it.

BEST CARS TO BUY VS. LEASE

BUYING

The best car to purchase is one that meets your individual needs and budget. Talk to our sales team to find your next vehicle.

LEASING

 

The best cars to lease are those with the best book value after the term of the lease. Since they depreciate less, you pay less. Review the lease ratings to see which cars retain their value before making a decision.