Should I Buy or Lease?

If you’re looking for a new or certified pre-owned Cadillac vehicle around Peoria, you might be debating leasing vs. buying. One of the most common questions Morton drivers have asked us has been, “Should I buy or lease a car?”

Ray Dennison Cadillac has been selling cars in the Bloomington area for many years, and we know car buying can be complicated. In the following guide, we compare leasing vs. buying to showcase which is best for your budget. If you have additional questions, don’t hesitate to reach out to our Pekin finance team.

Leasing vs. Buying a Vehicle

So, should I buy or lease a car? When you decide to lease your Peoria ride, it’s similar to renting a vehicle for a long-term contract period. During this contract, you’ll have to pay monthly payments for the duration of its length.

You won’t be able to build equity as you would from outright buying the model. Instead, you’re paying for the ability to use that vehicle for a specific amount of months and mileage, as agreed upon between you and the dealership. When your car lease is over, you can trade it in, replace the leased model with another, or buy the vehicle outright and end the lease.

Pros and Cons of Leasing a Car

Pros:

• Lower Monthly Payments: You’ll have smaller down payments when you lease your Pekin ride.
• Worry-Free Maintenance: Many vehicles come with a three-year lease, meaning most service and maintenance repairs will be covered within your existing terms.
• No Worries About Resale: When the lease is over, just return the car. If you have exceeded the agreed-upon mileage, or there’s some wear and tear, you may have fees to pay.
• Get a New Car Every Few Years: You’ll be able to return your car every few years and get the latest vehicles and tech!

Cons: 

• Mileage Requirements: Exceeding the agreed-upon mileage can result in having fees to pay.
• Constant Monthly Payments: You will always have to maintain those monthly payments to keep your car, and this will be a constant during your lease. 

Pros and Cons of Buying a Car

Pros:

• Ownership: When you buy your vehicle and finish the monthly payments, you’ll own the vehicle outright. For those planning to sell it off or trade it in, you’ll have the ability to do so.
• Customize Your Vehicle: Leases have restrictions about what you can do with your Cadillac vehicle in Pekin. Owning the car means not having to deal with that.
• No Restrictions: Don’t worry about wear and tear, mileage restrictions, and other issues. All your repairs and services are entirely at your discretion. 

Cons:

• Higher Monthly Payments: When you lease a car, you’ll have lower monthly payments than if you were buying.
• Rapid Depreciation: New cars lose between 15% and 50% of their total value in the first five years.
• Larger Down Payment: For those trying to get pre-approved for a loan, you will have to make a larger down payment to do so. The same can’t be said when you lease your Morton ride.

Buy or Lease Your Next Cadillac With Ray Dennison Cadillac

Now that you have a proper answer to “Should I buy or lease a car?” the choice is entirely up to you. Come down to Ray Dennison Cadillac, and don’t forget to take advantage of our new and pre-owned vehicle specials to save on your next model. 

You can also use our payment calculator to estimate your monthly payments. Experience our great selection in Pekin with Ray Dennison Cadillac!