When it comes to financing a new vehicle, do you know if you want to lease or buy? Our team in Altoona could help you make that decision when you visit us near State College. If you can afford it, you can pay for the car upfront and leave the dealership with full ownership rights. If not, you can always lease or take a loan for the car. But what exactly do these two options mean? We help clients choose between leasing and loaning for their next Chrysler, Dodge, Jeep, and Ram vehicles.
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Learn More About Leasing
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Simply put, a lease allows you to have a car for a specific time and mileage. With this option, you need to put in a down payment and concurrent monthly fees to drive the car. However, at the end of the lease period, you don't get to own the car and can conveniently return it to us. This option is suitable for clients who like changing driving a new vehicle with the latest features often.
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With leasing, you get to enjoy lots of benefits. For example, if you are leasing a high-end car prone to depreciate a lot in the first years, you don't have to bear the depreciation cost. If you buy the same model new, you'll incur the depreciation costs, making it difficult to sell it at the price you bought it for. Also, with leasing, you typically will enjoy lower monthly fees as compared to someone who is taking a loan out for a car. If you like the vehicle you're leasing and want to own it, you can buy the model at the end of the lease. You also get additional warranty options and lower maintenance fees with a lease.
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It's worth noting that you pay higher insurance premiums with leasing a car. This is because, with a lease, you are required to get full coverage for the car. This includes collision coverage and comprehensive coverage. The reason for this is the entity financing the model has a financial stake in the vehicle, and they need to be compensated if the car happens to get damaged.
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Consider a Loan
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With a loan, our finance center arranges a payment plan with a lender from whom you take a loan from. Through a loan, you make monthly payments for a specific period and amount, after which you get to own the car. We have built a relationship with leaders around the area over time and are able to get you competitive interest rates.
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So why would you want to take a loan on a car? Well, for one, you may be tight on cash and cannot pay for a car upfront. Also, with financing through our dealership, you get lower interest rates and can work with us to determine an individualized package. Another benefit of taking out a loan through our dealership is you'll enjoy faster processing as opposed to approaching a loan facility and asking for one yourself. We also offer longer loan terms so you can pay it back on your own timeline without pressure.
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Some of the downsides of taking a loan for a vehicle include depreciation costs. When you choose a loan, you ultimately bear the depreciation cost. This option puts you on the path to ownership, leaving the customization up to you. You also have full control over what you can do with it once you're ready for a different model, whether that's selling it or trading it in.
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Schedule a Finance Appointment Online
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Choosing between a lease or loan option for a car can be challenging; however, with this information in mind, hopefully, you can weigh the two and decide. If not, visit us at our finance center and get advised by our professionals about loaning or leasing a Chrysler, Dodge, Jeep, or Ram car. Contact us over the phone or online with questions or to schedule an appointment. We look forward to seeing you here soon.
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