Deciding how to pay for your next vehicle can feel like one of the trickiest parts of the whole car buying process, and we get it. Whether you are eyeing a new Jeep or a rugged Ram, understanding your options makes the decision a lot less stressful. We put together some of the most common questions we hear about leasing and financing to help point you in the right direction. When you are ready to start browsing, take a look through our new vehicle inventory anytime.
Key Points
- Financing builds toward ownership, while leasing offers lower monthly payments without ever owning the vehicle outright.
- At the end of a lease, you can return the vehicle, buy it out, or trade it in toward something new.
- Most leases include an annual mileage limit between 10,000 and 15,000 miles, so it’s worth planning ahead to avoid overage fees.
What’s the Main Difference Between Leasing and Financing a Vehicle?
This is usually the first question shoppers ask, and it is a great place to start. A few key differences worth knowing:
- Financing means you are paying toward ownership. Once the loan is paid off, the vehicle is fully yours.
- Leasing is essentially a long-term rental, where you pay to use the vehicle for a set period without owning it
- Monthly payments on a lease are often lower than financing the same vehicle
- Financing typically comes with mileage freedom, while leasing usually includes mileage limits
Is It Cheaper to Lease or Finance a Jeep or Ram?
The honest answer is that it depends on your goals. A few things to consider:
- Leasing often comes with a lower monthly payment, making it easier on your budget in the short term
- Financing tends to cost more monthly but builds equity toward eventually owning the vehicle outright
- If you like driving a new vehicle every few years, leasing can be more cost effective over time
- If you plan to keep your vehicle for many years, financing is usually the better long-term value
Our finance team can walk you through real numbers based on the specific Jeep or Ram model you have in mind, so you can see exactly how each option compares.
What Happens at the End of a Lease?
Once your lease term wraps up, you generally have a few choices:
- Return the vehicle and walk away, as long as it is within the agreed upon condition and mileage
- Purchase the vehicle outright for its predetermined residual value
- Trade it in toward a new lease or purchase on a different model
- Extend your current lease for a short period if you need more time to decide
Are There Mileage Limits with Leasing?
Most leases come with an annual mileage allowance, usually somewhere between 10,000 and 15,000 miles per year. If you go over that limit, you will likely owe a per mile overage fee once the lease ends. It is worth thinking honestly about your typical driving habits before choosing a mileage package, since a higher mileage lease can sometimes cost less overall than paying overage fees later.
Looking for Car Financing Near Nashville, TN?
If you are ready to see what you may qualify for, our online tool makes it simple to check your options ahead of time. Use our Quickly Qualify tool to get started from home; no dealership visit is required.
Ready to Find Your Next Vehicle?
Whether leasing or financing sounds like the better fit for your lifestyle, our team is here to help you make the right choice with confidence. Be sure to check out our current new vehicle specials too, since there is no better time to find a great deal on your next Jeep or Ram. Stop by Beaman CDJR today and let us help you drive away in the vehicle that fits your budget and your life.
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