If it's time to invest in a new Land Rover, you may be having a tough time choosing between leasing or buying. What's really the difference between the two? Does one option offer more than the other? Here at Land Rover Stevens Creek, we frequently hear these kinds of questions from customers. While many drivers are familiar with the process of purchasing a vehicle, some don't know much about leasing. Both can be advantageous paths to take when considering a new Land Rover from our inventory, but to help, we've put together the pros and cons of both options. Keep reading to learn more about the benefits of buying and leasing. As always, if you have further questions, you can contact our financial experts.
Minimal Upfront Cost
Leasing is similar to renting. If you decide to lease your new Land Rover, you agree to make monthly payments with the knowledge that you'll return the vehicle to the dealership at the end of your agreed lease period. A down payment for a lease contract is typically lower than buying, making your upfront cost much less. In addition, we frequently offer new car specials that provide lower monthly payments on a lease, meaning that leasing could be better for you in the short term.
There are certain advantages that come with leasing that buying can't offer. On average, lease terms last for 2-3 years (or 24-36 months), so leasing tends to be shorter than buying. Lessees are usually given around 12,000-15,000 miles per year on the car, but you have the option to buy more miles if needed at signing. Unlike purchasing, you can lease a brand-new car every few years, minus the hassle of selling or trading. And if you've fallen in love with your Land Rover by the end of your lease? You have the option to purchase it if you've decided you don't want to part with it.
Because lease terms last on average between 2-3 years, your new Land Rover will most likely still qualify under its manufacturer warranty for your entire lease. What does that mean for you? Any damages or repairs that qualify under the warranty aren't your financial responsibility, and most new cars won't require extensive repairs anyway.
Despite the advantages that leasing offers, only ownership can offer you true freedom. After you complete your monthly payments, your Land Rover is yours to keep, sell or trade. You have the freedom to choose a new paint color or upgrade the audio system without needing permission. You'll have the luxury of true independence that you would expect from owning a vehicle like a Land Rover.
Although buying typically requires a larger down payment, purchasing your Land Rover may be more fiscally responsible in the long run. Not only do you have more financing options than leasing can offer, once you've finished your monthly payments, that money (including your down payment) is secured when you keep your vehicle. You will see better return on your investment when you buy, unlike leasing.
No Mileage Restrictions
When you purchase, you're in charge. You won't be stuck with mileage restrictions (or the fees if you go over), and you aren't required to obtain permission to leave the country in your car, either. Ownership means autonomy from lenders and the freedom to go wherever you want.
If youâ€™re ready to be the proud owner or lessee of one of our new models, feel free to contact us online or visit us at 4040 Stevens Creek Blvd, San Jose, CA 95129. We look forward to serving customers near Los Gatos, Los Altos and Belmont.