CADILLAC LEASE NEAR CHICAGO
When you shop for a new car, you generally have two ways of financing your vehicle's cost: leasing and buying. The choice of whether to lease or buy is an important one. You can receive tailored advice by sharing your goals and concerns with our Cadillac lease Chicago-based experts.
To help you make an educated decision, we offer the following guidelines on the main differences and benefits of purchasing or leasing a Cadillac near Chicago, IL.
HOW LEASING A CADILLAC WORKS?
When you lease a car, you place a down payment at signing and maintain monthly payments for a set period of time. This period of time is known as the lease term, which is usually between 24 and 36 months. At the end of your lease term, you return the car to the dealership. In some cases, you may not even need to place a down payment at all, allowing you to save thousands upfront.
Because you are essentially renting the car instead of owning it, there are some restrictions put in place by the dealership. These are aimed at keeping the car in good condition, which encourages you to enjoy a clean, well-maintained vehicle. Maintenance costs for leased cars are often covered by the dealership, again leading to lower short-term costs.
WHY LEASE VS BUY?
Leasing a car allows you access a higher price bracket than buying because it allows you to pay only for the depreciation of the vehicle plus interest and fees versus the entire cost of the car.
When buying a car, you are paying the total amount of the car's value, whether that entire amount is paid with cash upfront or a car loan. Either way, you pay for a purchased vehicle, the dealership is made whole at the point of sale. When you lease a car, you are not paying the full value of the car. Instead, you are paying the difference between the current value of the car and the expected value of the car at the end of the lease term.
For example, let's say you find your heart set on a $40,000 Cadillac vehicle. If you buy the car, you'll need to arrange a full cash payment or, more commonly, a car loan that pays this full amount. Now let's assume this car is expected to depreciate to a value of $25,000 after three years. A three-year lease agreement would cover only the loss in car value. In other words, the lease down payment and monthly payments apply to the $15,000 difference in valuation and not the $40,000 original price.
PERKS OF LEASING A CADILLAC
Leasing keeps your upfront and monthly payments lower. Some lease programs even allow no down payment at all, making this is a serious consideration for buyers looking to save upfront costs. Because you are financing a lower total amount, you may qualify for leasing when your credit disqualifies you from purchasing. Since you are paying interest on only the expected depreciation of the car, your interest accumulates on a much lower balance, which also helps save money.
Leasing also allows you to more easily upgrade your car at the end of every lease term. You don't have to face the hassle of selling your purchased vehicle, whether privately or to a dealership, or haggling for trade-in value.
Another perk of leasing is the lower maintenance and repair costs. Because most lease terms end before manufacturer warranties end, most breakdowns will be covered. Also, because the dealership has a stake in keeping the car in good condition, many lease terms include free maintenance visits to keep the oil, filters, and tires maintained on schedule.
Should you find you need more time at the end of your lease, you can often negotiate for a month-to-month leasing or a short extended lease period of three to six months. This strategy allows you to buy time while you search for the next best deals.
PERKS OF BUYING A CADILLAC
Although buying may seem more expensive upfront due to owing to the entire value of the car, your long-term costs may be lower when you buy versus leasing. This is because you own the car when you buy it, so once your car loan is paid off, the car is yours to keep, unlike a lease which must be returned to the dealership. Now that you own your car, you can continue to drive it with no monthly payments or you can sell it and keep the money you make. If, after your lease term ends, you plan on switching to a different or newer model, this means your monthly payments will be ongoing.
One of the biggest perks of buying is mileage usage. Leases limit your mileage per year in an effort to keep the car's value when it is returned. If lessees go over their mileage allotment, they pay as much as 15 to 30 cents per mile. This means going over your yearly mileage by just 1,000 miles can cost up to $300 upon return of the leased vehicle. Conversely, if you drive far less than your lease agreement states, you've essentially paid money for miles you didn't use. When you own your vehicle outright, you can drive more freely without worrying about your mileage.
For those who like to deck out their cars with custom aftermarket modifications, buying may be the way to go. Lease vehicles cannot be painted and any gear you add must be removed before returning the vehicle, which can be costly.
WHY Rizza Cadillac SERVING CHICAGO?
Whether you plan to purchase or lease, Rizza Cadillac is able to offer generous financing terms that can fit your budget and help you meet your financial goals. Our expert finance team is here to answer all your questions and guide you toward the right Cadillac lease deal at our Chicago dealership.
Your lease deal may be affected by the Cadillac model you choose. Our friendly, knowledgeable sales team can help guide you toward similar models that may be available with limited-time lease offers that may offer no money down or lower APR terms.