Lease or Buy Your Jeep Detroit

Buying is more commonly referred to as financing, which is when a customer borrows money from a bank or credit union to purchase a vehicle and makes monthly payments to repay the loan until it is paid off. Four components go into an auto loan. First is the total cost of the vehicle, which determines the total amount of the loan. The total loan amount can be lowered by making a down payment or trading in a vehicle. Second is the interest rate of the loan, which is correlated to the customer's credit standing. The next component is the loan term, which is the length of time the customer has to pay off the loan. Loan terms typically last between 24 and 64 months. However, approved customers can extend the loan term up to 84 months to get the desired monthly payment. Financing has an array of benefits, the most prominent being no mileage limitations. Once the loan is fully paid off, the bank transfers the vehicle's title to the customer, making them its sole owner. At this point, the customer can choose to drive the vehicle free from any payments, sell it, or trade it in. 

While financing is borrowing money from a financial institution to pay for a car, leasing is essentially borrowing the car and paying for it monthly. Monthly lease payments are based on the vehicle's value rather than its total cost, oftentimes making them lower compared to financing loan payments. In most cases, lease agreements last between 12 and 48 months with a yearly mileage limit. Mileage limits for a leased Jeep can be selected based on the customer's driving needs, including limits of 10,000, 12,000, and 15,000 miles per year. Leasing is a fantastic option for drivers with shorter commutes and those who enjoy getting into a new car every couple of years. When you decide to lease a vehicle, all routine services are taken care of by the dealership's service center. Additionally, since the vehicle is technically being borrowed, guaranteed asset protection, more commonly known as gap insurance, is automatically rolled into the monthly payment, covering the cost of the vehicle not covered by the remaining value in the event of a total loss. Leasing often requires no down payment, and if one is made it is often lower than a down payment on a financing loan. At the end of the lease agreement, you have three options for how to proceed. You can trade in the vehicle for a new one, extend the lease by another six months, or buy out the remainder of the vehicle's value either all at once or by obtaining financing.

There are a few steps you can take to decide which of the payment methods above is most suitable for you. First and foremost, assess your current financial situation. Take note of how much money you have coming in and going out on a monthly basis to determine where a vehicle payment can fit in. When doing this, be sure to account for all other vehicle expenses, such as gas, maintenance, and insurance. While you're assessing your finances, you should also take a moment to determine how much you can afford for a down payment. To get an estimate on how much you drive each year, reset your trip odometer and drive as you normally would for one month. After a full month, multiply the odometer reading by twelve and that is your estimated yearly mileage. This will help you decide whether leasing or buying is best for you and, if you choose to lease, which mileage limit best suits your driving habits. Having this information allows for a smoother car-buying experience. 

Here at Village Jeep, we are proud to offer flexible financing and leasing options, as we understand that no two drivers are alike. Whether you're looking to finance a new Jeep Compass or lease a new Grand Cherokee, Village Jeep can help make it happen! While you're here on our website, you can read vehicle reviews, browse our new Jeep inventory, apply for financing, use the contact form below to reach our sales team, and much more! When you find a Jeep that you like, come on down to Village Jeep at 31200 Woodward Ave in Royal Oak, Michigan, to take it for a test drive. We look forward to working with you!