To Buy or Not to Buy: The Age Old Debate Rolls On

Posted by admin on January 7, 2011

After years of driving the same car and dealing with nagging repairs, you’ve reached the breaking point – it’s time to pull the trigger and get a new vehicle.

But the decision is marked by the all-important question that comes across the minds of those looking at a new vehicle: buy or lease?

At Johnny Londoff Chevrolet, we’d like to provide a basic primer on whether buying or leasing is the right move for you to make.

Ownership. When selecting the leasing option, you’re not the vehicle’s owner.  In most cases, the leasing company is generally the owner.  That means that once the term of your lease expires, you can either return the vehicle or you can buy it for the residual, i.e. the amount you can buy the car for at the end of the lease.  If you’re a new vehicle buyer, you’re the sole owner and can maintain ownership once the loan term is complete.

Monthly Payments. Monthly payments are typically lower when one selects the leasing option.  This is because Leasing payments only includes vehicle depreciation.  When consumer’s option for buying, they’re paying for the entire purchase price, plus interest and other fees that are typically included (taxes, fees and interest).

Your Mileage May Vary. If you make frequent trips from St. Louis, Missouri to Schenectady, New York, buying is the best option as there are no mileage caps.  By piling on the mileage, though, you’re running the risk of significantly reducing your vehicle’s value when it comes time to sell.  An annual mileage cap, however, hamstrings a lessee.  A lessee usually has a range of 12,000 – 15,000 miles per year but can negotiate for a higher cap…for a fee.  Additionally, drivers are penalized for exceeding their mileage limits—to the tune of 10 to 15 cents per mile.

So if you’re in the market for the all-new Silverado HD or the red-hot Chevy Cruze, please use our Black Book® evaluator to get the right trade-in value for your vehicle.

To experience the Johnny Londoff Chevrolet difference for yourself,stop by our dealership at the Washington & Elizabeth exit in St. Louis or visit us online 24/7 at Londoff.com!