Thursday, July 30, 2015

Buy or Lease a New Car?: Some Insight

Buying a new car is an exciting time, but often the financial logistics of such a big purchase can hamper your enthusiasm. At Melloy Dodge, we strive to provide top notch service, and give our customers an honest assessment of the vehicle that’s right for them, and how to pay for it.

Something that we are asked quite frequently is: should I buy or lease this Dodge? The answer isn’t as straightforward as most buyers would like, but instead, depends a lot on lifestyle factors, budgets, and personal preferences.

Here, we’ve outlined some of the advantages of both options, and things to consider when making the decision. Of course, Melloy Dodge is staffed with experts who can provide you lots of guidance on a new car purchase, so don’t hesitate to stop in or call with questions!

It usually costs less up-front to lease rather than purchase a new Dodge or Ram truck. When leasing, initial costs usually include the first month's payment, a refundable security deposit, taxes and registration fees, with a smaller down payment.

Early termination (selling or trading it in on your timetable) and the amount of miles you drive are more flexible when you own the car instead of leasing. Most leases limited the number of miles you drive per year, usually 12,000 or 15,000. If you exceed those miles at the end of the lease, there can be hefty fees.

Monthly payments are usually higher when your purchase rather than lease. Under the purchase, you are paying off the entire cost of the vehicle, usually in a term from 4 to 7 years, as well as the finance charges, taxes and fees. The payment on a lease on the other hand, includes the depreciation on the vehicle only during the lease term, interest (or rental) charges, taxes and fees.

If you are considering a lease because credit issues might limit your ability to get financing, please see one of our finance managers at Melloy Dodge, or use our payment calculator. We often work with buyers who do have some credit challenges, and find them a reasonable interest rate on a car loan so they do get equity in the vehicle as well as repair their credit through regular payments. We also offer an easy and secure online finance application.

Whether you're looking for a new or used car or truck, or to lease a new vehicle, stop at Melloy Dodge on Coors, just north of Paseo del Norte in Albuquerque, or call us at 505-843-9600. We've been serving car buyers since 1955.

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