Leasing vs Buying

Leasing vs Buying

Unless you’re ready to pay for your new car in full, you can investigate two solid financing options, like leasing or buying. With our guidance, Daly City, San Francisco, and San Jose, California, car buyers can make their choice with confidence. Daly City Mitsubishi will discuss the reasons that each works for shoppers, and which may be the right choice for you. Then, contact us with any questions you might have!

Financing Your Car

Loans translate to financing. When you finance your car, you spread out your payments to cover the full cost of the vehicle. You’ll be borrowing the funds for your car from a financial institution or another trusted lender.

Take the first step by applying for a loan on our website. Once you gain approval and our financial specialist finds the ideal loan package for you, you can figure out your down payment. With a larger down payment, your monthly payment will generally be lower. If you want to trade in your current ride, this can serve as your down payment.

Let’s review the pros and cons of financing. That way, you can see if those elements mesh with your needs.

buy vs lease

Pros of Financing:

  • Full ownership of the vehicle
  • No mileage limits
  • Build equity in the vehicle

Cons of Financing:

  • Same vehicle until you trade it in or pay it off
  • Limited warranty coverage
  • Older features to use after a few years
Now, we’ll discuss another viable financing option that may appeal to you.

Leasing Your Car

Leasing a car means driving a brand-new one every few years for an exciting driving experience. A lease is not a loan, but more like an extended rental of a vehicle. The finance specialist will discuss lease terms based on how many months or miles you wish to drive the vehicle. It could cover three years or 36 months or 36,000 miles, which equals 12,000 miles per year.

Like financing, you fill out the finance application and can provide a down payment. Each month, you will make a payment. You’ll receive perks, like the factory warranty, which may cover the cost of any typical repair issues that arise.

When you’ve reached the end of the lease, you decide whether you want to exchange it for a newer car, pay off the remainder of the car, or walk away and pursue another automotive venture. If you enjoy testing out new features and the feel of a new car, it can be very thrilling to get to pick a new one for your new lease.

Pros of Leasing:

  • Factory warranty coverage
  • New car upgrades every few years
  • Varied driving experiences

Cons of Leasing:

  • Limited mileage and customization
  • No equity built in the vehicle
  • No vehicle ownership
It’s best to consider what suits your needs, which we’ll talk about below. You never know where the path to car ownership can lead you in the future.

What Do You Want to Do with Your Vehicle?

While you’re car shopping, keep in mind what you’ll be doing with your vehicle. Will you be accruing a lot of mileage or engaging in potentially messy tasks?

Deciding between leasing and buying means assessing your current and future situations. If you know that you’ll be relocating, you may want a short-term commitment, but if you’re searching for a family car, long-term may work out better for you.

What Do You Want to Do with Your Vehicle?

Discuss Leasing vs Buying with Daly City Mitsubishi

Keep these considerations in mind when deciding between leasing and buying. Our certified finance specialists at our finance center can help Daly City, San Francisco, and San Jose, CA, shoppers make a great decision. Visit Daly City Mitsubishi and talk to us about your finance options.

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