Shopping for a new car or truck raises the question: should I lease or buy a car? Some customers prefer to buy their vehicle, and others prefer to lease. At Burdick BMW, we work with all customers, regardless of their financing method, to find the right financing that fits their budget and lifestyle.
If you're wondering which option is better, both have their upsides. Let's examine the similarities and differences between financing and leasing.
Financing and Leasing Overview
The customer will pay a monthly premium with leasing and financing. The interest rates you pay depend on your credit history. The customer will pay the premium for the set term, with lease deals usually running 24 to 36 months. With auto financing, loan payments may spread out for up to 72 months.
Cicero, NY, customers will need to complete a credit application whether they lease or finance. Usually, the process starts with a soft credit check to determine any preapprovals. A more detailed check would likely be necessary for leasing or financing. Applicants can expect to provide personal identifying and financial details.
Down payments are commonly required when leasing or financing, and the amount put as a down payment lowers the monthly premium since the amount required for a loan decreases. With leasing, customers only pay for depreciation, and a down payment would lower the rental cost.
Customers shouldn't overlook the tremendous benefits of making a trade-in. Car owners who wish to sell the vehicle when getting a newer model could put the value of it toward a lease or purchase. Consider this as another way of adding more to the down payment amount and making the deal less costly.
Benefits to Leasing
Again, personal preferences may affect whether someone chooses to lease or finance. With leasing, the customer might save money since the costs only cover depreciation, and they must return the vehicle when the lease term ends. Extending the lease could be an option for drivers wishing to continue driving the same model. Either way, the monthly premium for leasing a specific make and model would likely be lower than financing the same one.
Leasing could be a solid choice for car buyers who want to drive the newest models and upgrade to a brand-new car, truck, or SUV once their current lease ends. The process of returning the leased model and signing a deal for a new lease becomes the straightforward next step to take.
Continually upgrading to a newer model allows customers to access the latest features. Besides enjoying the newest infotainment features, recent models will present the latest safety technology, which is a plus.
Benefits to Financing
Financing a vehicle purchase could be preferable to a Cicero area driver intending to keep the car for several years. Once customers pay off the balance, the title and ownership shift to them. Driving a reliable vehicle for several years could be a cost-effective way to own a car. Also, lease deals come with a specific amount of allocated miles. Anything over that amount requires paying overage fees. Such terms are not part of a financing deal.
Financing a purchase could also open doors to buying an older model that is not eligible for leasing. A customer might prefer a high mileage model with a bargain price, and financing would be the way to acquire it. Also, some shoppers like financing if they're getting a second vehicle.
Whether you're leasing or financing, we invite all customers to explore our inventory at Burdick BMW and schedule a test drive around Cicero, NY. Learn more about your BMW financing and complete a financing application online to save time at the dealership.
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Burdick BMW
5947 E Circle Dr
Cicero, NY 13039
- Sales: (315) 459-6000
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