Guide to Buying vs Leasing

Brought to you by Fullerton Auto Group of Somerville NJ

On the fence as to whether or not to Lease or Buy your next ride? Let's break it down into smaller pieces and then you will find it easier to decide. Both are good, but you want the better of the two that fits your needs, because that's what really matters here, right? Either way, you will win when you come over here to the experienced professionals here at Fullerton Auto Group, because we are here to make sure that you get what you want! Now, let's get into what these methods involve and some important things to consider along the way.

What is Leasing and Buying defined as?

When you lease a vehicle, that means you pay smaller amounts (than buying) for the use of the vehicle for a certain time period and/or before a certain mileage amount is reached, and also the dealer provides service for most repairs and upkeep. After that term is done, the vehicle usually goes back to the dealer. Buying a vehicle means you negotiate a different type of contract, probably with a warranty, for a new or used vehicle, and the larger payments you make go towards your eventual ownership of the vehicle. You pay for any repairs that are not in the warranty, but you can get it repaired anywhere you like. After you buy it, you can sell it privately or trade it back in to the dealer for money down on a new car purchase.

Should I be cautious on a Lease Agreement?

Any financial contract needs a good looking over, especially with a friend you trust, but lease agreements tend to be straightforward arrangements. Think about it, there are thousands of Lease agreements done in any given day, the dealer has most probably ironed out any kinks at this point. You can always have them write an extra section too if you are worried that something is too vague, just make sure you both sign it. In actuality, a lease is designed to protect both parties, not just the dealer from loss or fraud. Imagine the "He Said - She Said" games that would happen without something in writing; it is better all-around with a lease agreement for the records! You should be able to trust what you see in writing, and the dealer (in this case, us here at Fullerton Auto Group in NJ), should be reputable in the community (like we are)!

Any details to consider here?

Think about vehicle wear & tear, GAP coverage, the end of term, down payments, and taxes, to name a few. GAP coverage is what you want on either type of agreement in case of a complete financial loss of the vehicle (from an accident or act of nature for instance). This insurance will pay any remaining difference between the genuine cash value of a vehicle and the balance still owed on the financing. On taxes, usually, a percentage of the whole purchase price of the vehicle is due at signing when buying, but this is normally incorporated into the monthly payments by design. Taxes on a lease are calculated differently, with the full vehicle value getting combined with your (lower) monthly payment. Usually, a certain amount of wear & tear is allowed in any leased vehicle, but it can't hurt to take photos of the inside, outside, engine, and underside before you move in your stuff!

Where do I get started with Fullerton Auto Group for these processes?

That's easy too! If you are considering a lease with us, click here to get going on the next financing step with us! If you want to buy a vehicle, we have that covered too and can click here to see Our Newest Inventory! Come on in after that, and we will make the whole thing simple!