When you find a new Chrysler car you like here at Hall Chrysler Dodge Jeep® RAM of Virginia Beach, you have two options. You can finance it and buy it, or you can sign a Chrysler lease. Both of these can be great options for drivers, but you have to think carefully about your priorities and driving habits before you decide which path is right for you.
Let's take a closer look at both options and weigh their pros and cons in a few key areas.
Costs
Lease payments are generally lower than car loan payments. Many drivers take advantage of this and lease to get “more car” for their money. Many types of maintenance can also be covered under a lease agreement, giving leasing a more predictable cost.
Car loan payments are more expensive, but once the loan is paid off the cost of ownership decreases dramatically. You just have to worry about insurance, fuel costs, and maintenance at that point.
Limitations
A lease agreement often limits what you can do with your car, since you don't technically own it. There is a limit on how many miles you can drive each year, for example, and going over that limit can result in additional fees. You also can't customize your vehicle with accessories or performance parts when you lease.
If you drive a lot or like to add new parts to your car, financing might be better for you.
Depreciation
When your lease agreement is made, it calculates a certain amount of depreciation. You're basically paying for that depreciation over the course of your lease term.
Depreciation has a different effect when you buy though. If you go to sell your car later, you'll notice that your vehicle is worth significantly less than it was worth when you bought it. Leasing is often the better choice for drivers who plan to sell off their car in a few years.
If you have any more questions about leasing or Chrysler financing, we can help. Visit our new car dealership in Virginia Beach and talk to our experienced dealers and staff today.