Lease or Finance: Choosing the Best Option for Your New Car Upgrade

It's an age-old question. Should you lease or finance your new vehicle purchase? Well, this all depends on your current situation and priorities. Below our experts at Melloy Dodge will go over the pros and cons of each so we can help you make a smart, informed decision.

 

Leasing 

Leasing has become increasingly popular for those who want a new vehicle without committing to a long-term contract. You make payments like normal, but the leasing company retains vehicle ownership. Once the term ends, you return the car to them.

Pros

• Lower Monthly Payments: Payments are often less expensive than loan payments. This appeals to individuals wanting to drive a new vehicle while maintaining a reasonable monthly budget.
• Access to Newer Models: You'll experience the newest features and technologies available. Due to shorter lease terms, you can upgrade every few years.
• Reduced Maintenance Costs: You will likely have to spend less on repair and maintenance as your lease will end before any significant repairs are needed and stays covered under warranty.

Cons

• Mileage Limits: Signing a lease agreement usually includes a limit on the number of miles you can drive. If you don't accurately estimate how many miles you drive in a year and fail to select a lease that fits your driving habits, extra charges could come your way.
• Wear and Tear: Considering normal wear and tear, you'll be responsible for returning the vehicle in good condition. Additional charges will incur if you cause excessive damage or make modifications.
• Early Termination: Knowing the costs and fees of ending the lease early is important. Carefully review the terms and conditions to avoid unexpected expenses.

 

Financing 

Financing a car is when you purchase a vehicle without paying the total price upfront. You usually borrow money from a bank, credit union, or dealership offering from Chrysler Capital to make the purchase. The borrowed amount, plus interest and fees, is repaid over a set period through monthly installments.

 

Pros

• Ownership: When financing, you own the car and can do with it what you wish as long as you continue making payments or pay it off.
• Flexible Financing – Financing terms can be more spread out, which helps you have a lower monthly payment, compared to a lease.
• Credit Building - You can enhance your credit score by taking out a car loan and consistently making on-time payments. This can benefit you in the future when you apply for mortgages or other loans.

Cons 

• Depreciation - As time passes, vehicles lose their value. When financing a car, consider that your loan balance may become higher than the car's actual worth, which is known as negative equity.
• Interest Adding to Overall Cost - You'll likely gain interest charges over the life of your loan, adding to the vehicle's overall price. These can vary based on your creditworthiness and market conditions.
• Higher Insurance Costs: Lenders typically require comprehensive insurance coverage for financed vehicles. This kind of coverage can cost more than basic insurance, increasing transportation expenses.

 

To make the best choice, carefully evaluate your budget and lifestyle. Consider the factors above and weigh the pros and cons of each. This will help you make an informed decision!

 

Visit us at Melloy Dodge today to explore your options and embark on an exciting journey toward owning or leasing your new car. Our sales team of experts are here to guide you every step of the way.

 

How to Make the Most of Your Test Drive

The test drive is important in determining whether a specific car is the perfect match for you and can ultimately shape your future car purchase. Regrettably, most customers participate in test drives without being aware of what to keep an eye out for. Nevertheless, it's significant in understanding any potential problems that may arise in the future. Here are a few things you should do to make the most out of your drive

Test Drive Multiple Vehicles: To make the most out of your test drive, it's important not to rush into falling in love with the first car you try out. Instead, we recommend test-driving a few different models and comparing them to ensure you find the right fit. While it's easy to get excited about a car's appearance and features, keep in mind that each vehicle is unique. We suggest test-driving a few different models and comparing them. Pay attention to the quality of the ride experience, including how smooth it feels and if cabin noise is minimized. Additionally, ensure you feel comfortable with the car's dimensions when reversing and parking. 

Check the Exterior and Interior: Take the time to inspect the vehicle's exterior and interior carefully. If you’re purchasing a pre-owned vehicle, check that it’s in good condition with minimal imperfections. More times than not, the salesperson will disclose any major dents, chips, or scratches prior to or during your drive.

 

Consider Comfort: Comfort is another crucial factor to consider during your test drive. Pay attention to cabin comfort and ensure that the seat fits you, providing adequate comfort for long-distance journeys. Also, consider how the presence of children or other passengers may affect your overall comfort. By prioritizing your comfort needs, you can make an informed decision about the car's suitability for your lifestyle.

 

As you embark on your car-buying journey, remember these critical factors. At Melloy Dodge, our dedicated team is committed to ensuring your complete comfort and satisfaction. Visit our dealership today to experience our wide range of vehicles and exceptional service. Let us help you find the perfect car for your needs!

 

Three Car Maintenance Tips to Prepare for Summer

Summer is right around the corner, meaning our vehicles will work much harder in the New Mexico heat. During the summer months, high temperatures, dust, dirt, and occasional rainfall take a toll on our cars’ important systems. So, if you’re planning on taking summer road trips, here are a few things our team at Melloy Dodge recommends you check beforehand: 

Check Fluids - Maintaining proper fluid levels in your vehicle is essential. It becomes even more critical during the summer when the heat can cause your oil to thin out and your coolant to heat up. Both issues can cause your engine to overheat and sometimes fail. Check regularly to avoid problems, but if you notice that your oil or coolant needs to be changed, we recommend visiting a licensed technician like our Melloy Dodge team, who can handle these tasks efficiently.

      Test Your Battery - Did you know if it’s too hot outside, your battery’s fluid can start to degrade? Well, it can! In fact, heat is the topcause of battery failure and reduced life. Test your battery with a car care expert before any long trips to avoid any surprise dead battery issues down the road.

      Check Tires – You should ideally be checking year-round; tire pressure can fluctuate wildly in the summer and increase due to excess heat. The hot pavement can also wear, crack and weaken the tire rubber. These factors significantly increase the chances of a dangerous blowout, which you must avoid at all costs.

At the Melloy Dodge service department, we always prioritize the well-being of your vehicle. When you bring it to us, our experts will address your concerns, test your battery, and ensure that all fluids are topped off with tire air checked as part of our routine service.

While we specialize in servicing Dodge, Ram, Jeep and Chrysler models, we service any make or model of car, truck, or SUV and offer many service specials. For routine services like some of the above, we even provide a no-appointment Express Lane to service you.