Buy Vs. Lease A Car Pros And Cons In Rockville, MD

 
So many of our guests toil over the decision to buy vs. lease a car. They wonder which method is the better deal. They ponder which one will make them happiest. The DARCARS Volvo Cars team is about to reveal a simple secret. Are you ready? Both automotive structures are designed to give you an exceptional experience: The "best" one to pick is the one that's best for you.

Our vehicle specialists in Rockville, MD, will take you through the ins and outs of each deal type so that you can dive away with total confidence.

Buying vs. Leasing a Car: Pros and Cons

Do you feel like you've spent too much time scouring the internet to determine whether it's better to lease vs. buy a new car? Are you perhaps even more undecided than when you started your research journey? We will demystify the process in straightforward terms, with no detail left out. Keep in mind that the idea of pros and cons depends on your point of view.

• Leasing: "Why would I ever lease? The car's not mine." Oh yeah? Do your neighbors get to drive it every day to work? Whose vehicle is it, then? There is no trick, fine print, or big secret with leasing. This innovative program was designed to protect the financial interests of drivers who love to get into new cars more frequently. You largely pay for the depreciation of the vehicle in question when you lease, which is an affordable way to drive a brand-new automobile. And guess what? You can always purchase your leased automobile if you decide to keep it. Learn more about our Volvo lease benefits here.
    
• Financing: This one is pretty straightforward. If you love to have vehicles for the long haul, drive a ton of miles per year, or view ownership as having an asset, then financing or buying is for you. Buying and financing are a bit different, too. Financing means you'll have auto loan payments, while buying your car outright means paying for the model in full. Financing is more common, so we'll focus on that. These days, models can last almost two decades, on average. That means years of ownership, most of it after you've paid off your loan.

So why lease instead of buying a car? You love getting new vehicles more frequently and love paying less. When to buy vs. lease a car? You want to own it and love it without any usage limitations. It really comes down to this question: What type of driver are you? Answering this question will determine whether it's better to buy vs. lease a car.

Frequently Asked Questions About Buying vs. Leasing

Is it better to just lease or buy a car?

The "better" method between buying and leasing your model depends on your personal preferences. Leasing is more flexible, allowing you to try new models every few years but with a mileage cap. Financing (or buying the car upfront) provides permanent ownership, meaning you won't need to worry about returning the model or watching the odometer to ensure you don't exceed your allotted mileage.

What is the 1% rule in car leasing?

The 1% rule is less a rule and more a guideline; it states that a good lease agreement is one that does not exceed 1% of the vehicle's MSRP. That means that an automobile with an MSRP of $50,000 with a lease payment of $500 or less is considered a good lease. If you'd like lease terms that follow the 1% rule, discuss this preference with our specialists.

Buy vs. Lease Financing: Declassified

Both payment structures require a credit application. With approval, you'll get an interest rate on your loan or a lease rate for your lease. Both of these numbers define the cost of the borrowed money. Your interest rate informs the borrowing cost for the full amount of the loan. Your lease rate is a fractional rate based on the expected depreciation of the leased vehicle.

Explore your end-of-lease options or the best ways to transfer ownership. The team at DARCARS Volvo Cars always has your financial interests at heart.