Buying vs Leasing

After you've selected your ideal car, you'll have to make a decision on whether you want to purchase or lease it.

Not sure when it comes to the differences of buying vs. leasing? Don't fret, as you're not alone. At Pecheles Ford, a local Ford dealer in the Washington, Greenville, and New Bern area, we get a great deal of questions about whether drivers should finance or lease their new car. As a result, we decided to clear the air once and for all.

In order to provide a better perception of when you should choose one choice over the other, let us first take a better look at what each one means.

What It Means to Finance a Car or Truck

Whenever you finance a brand-new vehicle, you use a loan to purchase it. In doing so, you come to an understanding to make routine payments to pay off the loan over a specific amount of time. Most auto loans will require monthly payments for roughly 60 to 72 months.

Once you pay back the loan, plus all interest, you'll acquire the title for the car and full ownership.

There are several different details that affect financing a new car. One is that you need to be approved for an auto loan. Many dealerships, such as Pecheles Ford, have grown professional relationships with lenders to help more car buyers-even drivers with less-than-perfect credit scores-be qualified for an affordable auto loan. As soon as you're approved, you'll be able to use the loan to finance your new vehicle.

What It Means to Lease a Vehicle

Leasing a car or truck is rather different from financing for a number of reasons. The most important and most distinguishing difference is that if you lease a vehicle, you don't own it. Instead, you're compelled to give it back to the dealership as soon as the leasing term ends, where you likely have the choice to buy the vehicle if that suits you. If not, the dealership still owns the vehicle. Leasing, in a way, is comparable to borrowing the car from the dealership.

Should you decide to lease your vehicle, you'll be presented with a leasing agreement at the dealership. This contract defines the terms of your lease. Just how many months you'll lease the vehicle, your mileage allowance, payments, and more are specified in the leasing papers.

Keep in mind that, despite the fact that you'll be making monthly payments, those payments don't go toward the final purchase of the vehicle unless you decide to buy the vehicle when your leasing term ends. However, that doesn't mean there won't be circumstances when you might possibly like to lease, as opposed to buy, a new car or truck.

When Would You Want to Buy? When Should You Lease?

When it comes to buying vs. leasing, there are unique benefits for each alternative, and your decision will essentially depend on your individual requirements and circumstances. Leasing a vehicle can be ideal if you're on a tight budget or unable to receive an auto loan in the Washington, Greenville, and New Bern area. The monthly payments for leasing a vehicle are, in most cases, lower than if you were financing the full purchase amount.

Leasing is also practical if you're not ready to commit to a specific model and may want to try out a number of different vehicles. Think of it like a trial period, where at the end of your lease, you can easily bring back the vehicle and try out a whole new model. You could also upgrade to a newer model more often than if you'd paid for the car outright.

Financing, on the other hand, is perfect for car buyers who want the highest amount of owner independence and flexibility. Anytime you finance a car, you're free to make adjustments to the vehicle, sell it, or drive as many miles as you want without having to worry about paying a penalty. After the loan is paid back, you'll be the main owner of the vehicle.

If you'd like more information regarding the differences of buying vs leasing, get in contact with our finance department at Pecheles Ford. As a reliable Ford dealer near Washington, Greenville, and New Bern, we're pleased to assist you with your vehicle research.

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Pecheles Ford

4020 Highway 264 West Suite 200
Directions Washington, NC 27889

  • Sales: (888) 492-1857
  • Service: (888) 508-8463
  • Parts: (888) 522-1806

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  • Monday 8:30AM - 7:30PM
  • Tuesday 8:30AM - 7:30PM
  • Wednesday 8:30AM - 7:30PM
  • Thursday 8:30AM - 7:30PM
  • Friday 8:30AM - 7:30PM
  • Saturday 8:30AM - 6:00PM
  • Sunday Closed
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