Keep Your Cadillac For a Long While or a Short While?

One crossroads that nearly every driver will encounter is whether they will buy or at lease their next vehicle. Some drivers know exactly what they want to do and don’t hesitate at all when asked whether they’d like to purchase or at least their vehicle. However, others sometimes ponder which method of ownership is truly best for them.

At Spitzer Autoworld Dubois Cadillac, we help our shoppers drive home in their dream Cadillac regardless if they choose to purchase or lease their next vehicle. Our Finance Center features both low-APR financing offers and attractive specials to help you drive home while enjoying affordable monthly payments.

Let’s take a look at leasing vs financing and help you determine which type of ownership is best for you! When you’re ready to test drive your favorite model, we welcome you to come into no other than Spitzer Autoworld Dubois Cadillac in Dubois, PA!

The Benefits of Purchasing

Keep the Car for as long As You want
When you lease a car, you agree to keep it for a period of two to three years before returning the vehicle and starting the process over again with a new vehicle. When you finance a car, you can keep the car or sell it whenever you’d like.

Equity
Another benefit to purchasing a car over leasing one is that you actually build equity. If you owe less than what your car is worth when you decide to sell it, you get to keep the remaining difference once you’ve paid off the loan. If your vehicle is already paid off when you decide to sell it, you get to keep all of that money.

Maintenance and Modifications
When you purchase a car, the vehicle is yours to keep. This also means that you are free to maintain, and modify your vehicle how you wish.

No Restrictions
Purchasing a car requires that there are no mileage, time, or other type of restrictions.

The Drawbacks of Purchasing

Steep Depreciation
A new vehicle can lose up to 60% of its value within the first 5 years of ownership. While this doesn’t matter much if you want to keep your vehicle long-term, it does make a difference if you wish to sell or trade in your vehicle two to three years after buying it. Sometimes this leads car buyers to be upside down on their vehicle. The term “upside down” is used when someone owes more on a vehicle than its worth.

Higher Payments
Because finance payments involve taking out an auto loan for the entire purchase price of the vehicle, loan payments are often higher than lease payments. However, many loan terms can be stretched out for as many as 72 and sometimes up to 84 months to make payments lower.

Repairs

After your manufacturer’s warranty expires, any needed repairs would have to be paid out of pocket.

The Benefits of Leasing

You’ll Drive a New Car Every Few Years
One of the great benefits about leasing is that it allows you to drive a new vehicle every few years. Not only does this mean that you’ll enjoy the latest style, but you’ll also enjoy the latest performance, safety and technology features too.

You’ll Always Be Under Warranty
Because leasing comes with mileage limits, your vehicle will likely be under warranty throughout the entirety of your lease. Not only does this mean that you’ll drive your vehicle during the most reliable time of its life, but you also never have to worry about costly repairs.

Lower Monthly Payments
Because leasing only involves making payments on the depreciation of a vehicle, plus a nominal interest rate, lease payments are often lower than finance payments. This fact allows lessee’s to drive the car of their dreams while enjoying an affordable monthly payment.

The Downside to Leasing

You Don’t Build Any Equity
When you lease a car, you’re essentially renting it for a period of two to three years; you never own the vehicle. This means that when the lease is up, you have to return the car. Unless you decide to purchase the vehicle, you’ll have to start the leasing or purchasing process all over again with a different vehicle.

It’s Never Paid Off
When you purchase a vehicle, you eventually pay it off. However, Once your lease term is up you have to return the vehicle and start the process over again. This means that as long as you lease, you’ll always have monthly payments.

You’re Committed
While buying a car comes with freedom, leasing a car comes with commitment. When you lease a car, you have to keep it throughout the entirety of the lease term. If you terminate your lease early, you might have to pay early termination fees, as well as the remaining balance of your lease.

Whether You Buy or Lease, Visit Spitzer Auto World Cadillac

We hope that you’ve enjoyed this matchup on leasing vs financing a car, and we hope this helped you make a decision on which method of vehicle ownership is best for you. At Spitzer Autoworld Dubois Cadillac, we feature a wide variety of new Cadillacs for you to choose from, while our Finance Center features exceptional deals and specials that help you enjoy an affordable monthly payment. Whether you’re leasing or buying, you’ll find that no other dealership in the Dubois, PA, Sandy, or Sykesville, PA areas is dedicated to getting you on the road with fantastic savings quite like us.

Make your way down to Spitzer Auto World Cadillac and test drive your favorite model today.