Differences Between Financing and Leasing Your Vehicle

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When thinking about getting a vehicle, whether it be used or new, there are some decisions you need to make and things to consider before you move forward. At California Motors Direct, we want you to be well-informed about the vehicle you want to purchase and which method works best for your situation and finances.

Leasing or buying a vehicle is a very important decision we have to make — some people make this decision many times throughout their lives, and some people buy the car of their dreams, keeping it until they are ready to pass it down to their children.

Whatever the situation you may be in — buying the next utility car or the car of your dreams — here are factors that will play a part in this decision-making process.

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Monthly Income

Having an accurate understanding of what your monthly finances look like and how much money you are willing to put aside for a car is very important. While neither of the options is the best or worst path to take, here are some pros and cons to consider:

Leasing a Car — Leasing is usually the cheaper option. There’s some added cost since, when you lease, you will be asked to fully insure the vehicle against all damage and accidents. While the insurance won’t break the bank, it’s something to consider.

Buying a Car — Buying is often more expensive than leasing when looking at monthly payments and considering you are buying the vehicle outright, but there are advantages to it. You get to keep the vehicle after all the payments have been fulfilled and, unless you are looking to refinance, you won’t have any changes in payment.

Driving Range

If you are someone who drives a lot and your commute is extensive, then considering buying over leasing can be beneficial. Leasing a vehicle often comes with a “mileage monthly limit” allowance for the miles you drive. While you won’t get in trouble for driving more than the established mile limits, most leasing contracts will charge a set amount for every mile you drive over the miles stipulated in the contract.

Wear and Tear

If you have had a past with little dents and scratches on your vehicle to the point where they feel unavoidable, leasing can be less favorable for you. Leasing contracts usually have wear and tear fees that will need to be paid at the moment you return your leased vehicle if there has been any damage done to the car.

When you buy a car, you don’t have any policies that require you to pay anything extra if some wear and tear happens to the car. However, you want to keep your vehicle as new as possible because any repairs come out of your pocket, no matter what type of contract you have.

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Buy a Car in California

Whether you are considering buying or leasing a car, you can stop by California Motors Direct and check out the extensive selection of vehicles we offer. All of our vehicles are thoroughly inspected by our experienced buyers before they make it to our lot — if it’s not up to par with our strict guidelines and expectations, we don’t allow the vehicle into our lot. Come visit us today at one of our many locations or contact us if you have any questions. We look forward to doing business with you!

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