Buying a Car vs Leasing

A Vehicle Lease With BMW of Allentown Puts You In Control

With a vehicle lease, you'll make payments for a period that typically lasts for two to three years. Similar to leasing a property, the ownership is retained by the lessor; however, as the lessee, you'll have exclusive use of the vehicle, providing the agreement terms are followed. BMW of Allentown, serving Easton, PA, has comprised a list of pros and cons associated with auto leasing:

Pros of Car Leasing

• Only pay for the amount of time the vehicle is utilized
• No losses due to depreciation
• Upgrade to a newer or different model, sooner
• Mileage options may be available
• End-of-lease deals and upgrade specials may be available
• Warranty remains intact for the duration of most leases
• Lower monthly payments and reduced down payment options are typical with leases

Cons of Car Leasing

• The lessor owns the vehicle unless purchased at end-of-lease
• Excellent credit is typically required to qualify for most lease offers
• Customization is limited to dealer installed and approved accessories
• Vehicle servicing must be completed at the dealership on time or at an authorized facility
• Mileage and wear and tear charges may apply
• GAP insurance is a requirement for nearly all leases

Is Buying Your Vehicle With an Auto Loan Right for You?

For consumers that keep their vehicles for longer than the average lease, buying is typically the best choice. Auto loan terms now come in many varieties, and since BMW of Allentown works with all types of buyers, approval is likely, even for those with less-than-perfect credit.

Owning your vehicle provides you with the benefit of being able to keep the vehicle for as long as you'd like, or you can sell it to pay it off early. BMW of Allentown is happy to provide you with the pros and cons that are associated with auto financing:

Pros of Car Financing

• The vehicle is owned free and clear once the loan is repaid
• Extended terms are available for lower monthly payment options
• Customization is unlimited – when you buy, you have the freedom to modify your vehicle as you please, from performance upgrades to choosing the exact exterior paint color you love.
• No servicing restrictions or requirements
• No mileage limitations or wear and tear conditions
• The ability to sell your car at any time to anyone

Cons of Car Financing

• Higher monthly payments when compared with leasing
• Down payment requirements may apply
• Vehicle values aren't guaranteed
• Depreciation costs are likely
• Financing deals are typically reserved for well-qualified customers
• Extended term auto loans can mean higher interest costs
• Vehicle condition, age, and mileage are major considerations when evaluating trade-ins and resale values