Ask the Expert: Car Buying

What is the Difference Between Leasing and Buying?

You’ve seen the Kahlo commercials asking if you would rather buy a certain Jeep at $299 a month, or buy it at $499 a month? Same Jeep! Well, the difference is between leasing and buying. When you buy a new car, and finance the purchase price, you could be signing up for a 5 or even 6 year loan. And even with zero or low per cent financing, your monthly payment could be four or five hundred dollars. By the time you’re in the last couple of years of the loan, you owe more than the car is worth. That’s what we call being upside down.

With leasing, you’re actually financing only the number of years you’ll use the car. So with a two year lease, you’re probably only going to pay for half of the car. Your payments could be much lower, even with a down payment as small as $2000.

At the end of the 2 year lease, you bring the car back, hand in the keys, and walk away. Or walk around the showroom and pick out another new car! You just have to be honest about how many miles you’re going to be driving, and get a lease that allows for that much mileage. Then at the end of the lease, you’re even!

So today, you’re looking at the same Jeep. Except one costs YOU twice as much, for more than twice as long. And 5 years from now, it’s NOT the same. It’s an older car.

About the time you’re in the third or fourth year of your car loan, you may be thinking, “I need a new car.” And that’s when it hurts. Because to buy anything new, you’ll have to roll in what you still owe on the old car.

If you want a good car today, and in the future, you really should consider leasing. Take care of the car you lease with scheduled maintenance, stay within the miles on the lease, and in 2 years you can bring it back, and get another new one.

It’s a good business decision. And a smart personal investment.

Of course, this applies to Chryslers, Jeeps and Dodges. Because at Kahlo Chrysler Jeep Dodge, we have lots of them. All the stylish but hardworking Chrysler vehicles.

Chrysler sedans and mini vans. Dodge cars and big heavy duty trucks, including the Dodge Sprinter, as well as light duty trucks like the Dakota, and of course, the Jeep Wranglers, Libertys, and Grand Cherokees.

You can drive any one of them away, with a low down payment and a low monthly payment, and only pay for the years you’ll use the vehicle.

That’s true of any make of vehicle you’re shopping for – but we hope you’ll come say Hello Kahlo.

www.hellokahlo.com

Locations

NOBLESVILLE
9900 Pleasant St
Noblesville, IN 46060
317-774-3340

KNIGHTSTOWN
7984 US West US 40
Knightstown, IN 46148
765-345-5731