Buy or Lease Options: Find What's Right in Grand Haven

When buying a car in Ludington, you have options - and these options have nothing to do with the selection of brands in front of you. In today’s blog, what we’re talking about is whether or not you should buy or lease your new vehicle.

Is there a right choice? No, not really. At the end of the day, the decision to buy or lease your new car, truck, or SUV is personal. However, understanding both of these options can go a long way in making sure you’re making the right call for you and your budget. Here’s what you need to know about buying vs. leasing.

What Does It Mean to Buy a New Car in the Great Lakes?

The decision to buy a car is a popular one, as you will own the vehicle once you’re done making payments on it. While you can buy a car outright with cash, that’s the exception rather than the rule. After all, very few buyers have tens of thousands of dollars just lying around to put down on a brand-new vehicle! This is why, if you opt for buying a car, you’re likely going to be applying for financing.

Financing allows you to take out a loan that covers the cost of the vehicle and make arrangements to pay it back in monthly installments. The amount of money you put down and your credit history will affect the total of these monthly payments, as well as how long you have to pay them off.

Usually, Western Michigan drivers will be able to choose from three loan terms: 36 months, 48 months, and 60 months, or 3-5 years, respectively. An experienced member of our Northern Shores team can help you determine which loan terms work best for your budget. Remember, you can obtain financing for both new and used cars. And because we buy cars, we have a huge selection of vehicles to choose from!

What Does It Mean to Lease a New Car in Coopersville?

Switching gears: what exactly does it mean to lease a new vehicle? When you finance and buy a car, you own it regardless of how many miles it has or how often you drive it. Leasing has set parameters for the duration of ownership.

For example, many leases ask drivers to not exceed a mileage cap - usually around 15,000 miles a year. While this doesn’t sound like a lot, don’t worry - leases are designed to account for how many miles the average Holland driver drives over 12 months. If you exceed this mileage, however, you will likely incur fees.

At the end of your lease, you’ll be able to trade the vehicle in for a newer model, meaning you’re always getting to experience a new car every few years.

Buying vs Leasing a Vehicle: Which One Is Better?

Photo by Towfiqu barbhuiya on Unsplash

Each car-buying option comes with pros and cons. Here’s an overview of some of them:

Pros of Buying a Car

You own your vehicle at the end of the loan term, so you get to do whatever you want with it
No mileage cap or associated fees
You can trade it in at a dealership for a new model after the loan term ends

Cons of Buying a Car

Higher monthly payments compared to leasing a vehicle
May have to put down a higher down payment to lower your monthly costs
More maintenance costs as the vehicle ages

Pros of Leasing a Car

Get to trade in your vehicle for a newer model every couple of years
Lower monthly payments
No down payment

Cons of Leasing a Car

You don’t own your vehicle
Have to adhere to a mileage cap, and pay fees for any additional miles accrued
Requires a good credit score and credit history

Determining which option is right for you requires you to think about your current lifestyle. If you have poor credit or are in the process of rebuilding, then buying a car may be the better option, as there are plenty of finance options for those with poor credit. Likewise, if you work remotely but want to enjoy the spoils of a new car, then leasing could allow you to explore without going over your mileage cap.

The team at Preferred Ford of Grand Haven is here to help you figure out what you want.

Visit Preferred Ford of Grand Haven and Let Our Staff Help You Buy Your Next Car!

Deciding whether to buy or lease your car can be complicated, but with the help of a seasoned professional, it doesn’t have to be. At Preferred Ford of Grand Haven, we can walk you through your options to help you make a comfortable choice. We can even help you fill out and submit a finance application.

Come visit us today to see the selection available to you. We’re located an easy 30-minute drive from Hudsonville.

Although every reasonable effort has been made to ensure the accuracy of the information contained on this site, absolute accuracy cannot be guaranteed. This site, and all information and materials appearing on it, are presented to the user "as is" without warranty of any kind, either express or implied. All vehicles are subject to prior sale. Price does not include applicable tax, title, and license charges. ‡Vehicles shown at different locations are not currently in our inventory (Not in Stock) but can be made available to you at our location within a reasonable date from the time of your request, not to exceed one week.