Leasing vs Buying
When it comes to purchasing your next vehicle, many customers will choose between leasing and buying…
However, how do you know which one is right for you?
Much of it comes down to monthly payments and how long you plan on driving the vehicle. Here are some tips to help you determine which one is right for your situation…
| Which One Is Right For You? | Leasing | Buying |
|---|---|---|
| How Long Did You Keep Your Last Vehicle? | ||
| If you only kept your last vehicle or usually keep your vehicles for a short time, around 2-4 years, leasing may be a good option. This allows you to upgrade more frequently to newer vehicles with updated technology. Typically, leasing is a better option when you don’t plan on keeping your car very long. | X | |
| Are You Driving Your Vehicle For Business Purposes? | ||
| Did you know that vehicle depreciation and lease payments can be deducted from your taxes if you’re driving your vehicle for business purposes? It’s always best to consult your tax advisor, but leasing may be beneficial for tax purposes if your vehicle is for business. | X | |
| How Many Miles Do You Drive? | ||
| Knowing the distance you typically drive is important. The average American driver drives approximately 12,000 miles per year. If you drive more than this, a lease may not make sense as there are mileage restrictions. Financing is likely the better option if you drive more than 12,000 miles per year. It doesn’t matter if you drive locally around Cedar Rapids or travel to other areas like Cedar Rapids, Waterloo or Dubuque, IA. | X | |
| Would You Prefer Your Monthly Payment To Be Lower? | ||
| As a general rule, leasing typically offers a lower monthly payment than financing. If having a low monthly payment is important, consider leasing. A lease usually does not require a large down payment and can also allow you to invest more in assets that appreciate. | X | |
| Are You Concerned About Your Vehicle Losing Value? | ||
| If you are concerned with the resale value of your vehicle or if you typically trade your vehicle in when purchasing a new one, leasing may make sense. Because you will return the vehicle at the end of the lease, the resale value shouldn’t be of concern. You will also have the option to purchase the vehicle at the end of the lease. If, however, you know you will keep your vehicle long term, financing may be the more appropriate option. | X | |
| How Concerned Are You With Maintenance & Repairs? | ||
| If the cost of repairs is a concern to you, remember that with a lease, your vehicle is under warranty. Most maintenance and service will be covered at little to no charge by the factory. | X | |
| Is Saving On Taxes Important To You? | ||
| When you finance a vehicle, you pay taxes on the full amount of the vehicle. This is usually rolled into the amount of the loan. When you lease, you pay less in taxes because you are only paying taxes on the portion of the vehicle you lease. | X | |
Sky Automall Ford & CDJR
1001 Ford Lane, Center Point, IA 52213
Contact UsHours
| Monday | 8:30AM - 8:00PM |
| Tuesday | 8:30AM - 8:00PM |
| Wednesday | 8:30AM - 8:00PM |
| Thursday | 8:30AM - 8:00PM |
| Friday | 8:30AM - 8:00PM |
| Saturday | 8:30AM - 4:30PM |
| Sunday | Closed |
| Monday | 7:30AM - 5:00PM |
| Tuesday | 7:30AM - 5:00PM |
| Wednesday | 7:30AM - 5:00PM |
| Thursday | 7:30AM - 5:00PM |
| Friday | 7:30AM - 5:00PM |
| Saturday | 7:30AM - 1:00PM |
| Sunday | Closed |
| you break it we fix it | |
| Monday | 7:30AM - 5:30PM |
| Tuesday | 7:30AM - 5:30PM |
| Wednesday | 7:30AM - 5:30PM |
| Thursday | 7:30AM - 5:30PM |
| Friday | 7:30AM - 5:30PM |
| Saturday | 8:00AM - 1:00PM |
| Sunday | Closed |