Buying vs Leasing?

At Bedford Chrysler Dodge Jeep Ram, we take great stride in making sure you have full understanding between the leasing and buying process. With that said, at Bedford Chrysler Dodge Jeep Ram we put together the top 10 questions folks ask when it comes to deciding on buying or leasing their next vehicle.
  
 
 
 What are my mileage agreements?











                      Buying
When your buying a vehicle, there are no limits on miles you may drive during and after the term of the loan. 
 








                    Leasing
In a lease agreement you are limited to mileage you can put on your vehicle. Most mileage terms are between 10,000-15,000 mile per year. You may have to pay over mileage fees if you exceed the predetermined miles. It is always best to talk with your sales and leasing consultant & discuss options if you think you might come exceed the miles within your lease contract.


 
 What are my options at the end of the term agreement?   










 Buying
After your loan matures, you own vehicle outright. Some customers enjoy not having a payment. Owners may want to consider cost of ownership on older vehicles vs. payment on a replacement vehicle. Do keep in mind that some maintenance may cost more than a regular lease payment. 



 Leasing
At the end of Lease although you do not own vehicle, you still have options. 1. You can buy out vehicle or 2. turn the vehicle back in to leasing bank. With some vehicles, the manufactures will encourage you to turn your lease in early and encourage you to lease again with special promotions attached. Follow up with your Sales and Leasing Consultant.                    

 
 
 

How are my monthly payments calculated?






 Buying
When financing your vehicle, your payments are calculated off total purchase price after rebates, fees taxes etc... Payment values over a 36-84 month loan period is typically more than what a lease payment would be.



Leasing
 The lease value in which your payment is determined on your vehicle is lower than an amount that would be traditionally if you were financing your vehicle. Depending on your credit history, equity or negative equity on your trade if trading and lease programs, lease payments are commonly lower than loan payments.

 

 What is my up-front costs?








 Buying
 Most customers put 10%, 20% or up to 50% down up-front to lower their payment and in some cases interest rate. This is not mandatory. Keep in mind, in some cases the bank may require a down payment to allow you to finance your vehicle due to credit history or negative equity in your trade. 


                            Leasing
In most cases, up-front costs include a down payment, taxes, registration and other fees may be required. Most customers decide to pay these fees up-front to lower their payment, but is not mandatory. In some cases the leasing bank may require a down payment to allow you to lease your vehicle due to negative equity on your trade and or credit history.
 
Can I customize my vehicle?




                      Buying
Since the vehicle is yours and you want to add tenting, a new stereo or wheels, you can customize it however you would like. There is no penalty with your bank. Do keep in mind, you may void your warranty due to some customization like lift kits, wheels, light kits and wiring, etc...

                        Leasing
When you lease your vehicle, you have some limitations to customization that you can make on your vehicle since you are technically not the owner. it is always best to check with your Sales and Leasing Consultant or lessor (the bank) before making customization's to your vehicle.

Can I terminate my
loan or lease early?




 Buying
You have the options to sell or trade your vehicle at anytime during the term of the loan. However, depending on the value of your vehicle, it is best to see us to value your trade when considering buying your next vehicle.


 Leasing
If your needing to terminate your lease early, you may incur an early-termination fee. We encourage you to visit your Sales and Leasing Consultant to discuss the possibility of avoiding this situation.



 

 Do I ever own the vehicle?









 Buying
After the loan matures and you receive the title to the vehicle, you own the vehicle outright. 
 





Leasing
When your leasing a vehicle, you are not the owner of the leased vehicle at the end of your contract term. However you do have options of buying the vehicle based on the guaranteed value written at the beginning of the lease agreement.


 
  

What is the return
 policy of my
vehicle?






 Buying
When it comes time to replace your vehicle, you have the option of choosing to whom and or where you sell or trade your vehicle.







 Leasing
At end of lease you have a few options. You can turn in your vehicle & walk away. Or you can purchase your vehicle keeping in mind of the pre-determined price in the lease agreement. In many cases the dealership may buy the vehicle for their dealer inventory. 



 
 
 

What will the value of my vehicle be at the end of the term?









 Buying
Depending on the current market value when the loan matures, most vehicles depreciate over time.







 Leasing
If you choose at end of lease to turn in your vehicle and walk away, the leasing bank is responsible for the depreciated value that's been predetermined by them. If you decide to purchase your vehicle at end of the lease, the future value at which you can buy the vehicle for is stated in lease contract the day the lease began.
 
 What about wear and tear on my vehicle at the end of the term?







Buying
There is no penalty during or after the lean on your vehicle. Always keep in mind, excess wear and tear will decrease the value of your vehicle when you go to sell or trade it in. 






Leasing
It is possible that you may incur excess wear and tear charges. The lease vehicle will go under an inspection to determine if there were any excess wear and tear charges. You also have the option to purchase a coverage plan to cover most excess wear and tear items. Ask your Sales and Leasing Consultant for more info.

 

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  1. Bedford Chrysler Dodge Jeep Ram

    10048 State Road 37
    Bedford, IN 47421

    • Sales: (812) 508-8971
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