Should You Finance or Lease Your New Volvo?

Financing a new car can be overly complicated if you don't take the time to do a little research before you begin your hunt for a new set of wheels. Typically, the two most common methods of getting a new car are either to finance or lease the car. Both have different benefits and downsides.

While many dealers may compare and contrast the pros and cons of financing versus leasing, we here at Volvo of Ocala wanted to dive a bit deeper and instead explore the various pros and cons specifically of leasing a brand new Volvo. Every buyer has a different set of wants and needs, so it is imperative that they enter this conversation fully informed. So, what are the pros and cons of leasing a new Volvo?

The Pros Of Leasing A New Volvo

  • The Ability to Drive a New Car Every Few Years
  • No Need to Worry About Failing Car Parts
  • Known Payments You Can Budget For

The Ability To Drive A New Car Every Few Years

Lease terms often fail to run any longer than just three years. This means that every three years, you will get to experience the latest and greatest technology in the automotive industry. This fact alone is what drives thousands of consumers to lease a vehicle every year.

No Need To Worry About Failing Car Parts

Because leases are almost always attached to brand new vehicles, drivers do not have to worry about having any issues with the car as long as it is brought in for regular maintenance. The same cannot be said for used cars that may already be greater than 100,000 miles into their usable life.

Known Payments You Can Budget For

Lease payments are very transparent and are expressed upfront to the consumer. This means that you will know exactly what you will be paying every month of the term. This allows consumers to properly budget this expense into their expendable income to ensure that they still have enough income left over to meet their other wants and needs.

The Cons Of Leasing A New Volvo

  • You Will Never Truly Own the Vehicle
  • Inability to Make the Car Your Own
  • Limited Mileage

You Will Never Truly Own The Vehicle

Perhaps the most striking downside to leasing is that you will never truly own the vehicle. Lease agreements are written in a way that contracts you to return the car to the dealer once the term has ended. This is not to say that the dealer would not be open to selling the car for its remaining retail value at the end of the lease, but consumers will often end up paying more in this structure than if they had just bought the car outright, to begin with.

Inability To Make The Car Your Own

Typically, when you buy a new car, you are free to make any upgrades you wish, ranging from improved performance features to paying for a new coat of paint to make the car your own. Unfortunately, leased vehicles must remain unaltered throughout the term of the lease. This means your options for the type of car you drive are much more limited when you decide to lease.

Limited Mileage

In most leases, there is a limitation on how many miles per year you can put on the car. The penalty for every mile driven over this limit is often so high that it would make more financial sense just to purchase the car outright. If you are someone who typically puts tens of thousands of miles per year on their car, then leasing a vehicle may not be for you.

Visit Volvo of Ocala to Learn More

If you'd like to learn more about the pros and cons of leasing a new Volvo in the Ocala area, we encourage you to come visit our dealership's finance center. You will be able to explore our current Volvo specials in person. We look forward to working with you soon!

Categories: New Inventory, Finance
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