Buying vs Leasing in Houston TX

If you lease a Ram 1500 or any vehicle, you are, in essence, renting the car for an extended period of time, generally 2-3 years. A car lease allows you to drive a vehicle from a dealership for an agreed-upon amount of time and miles and pay for its usage rather than the car's total purchase price. At the end of the lease, you'll return the vehicle and have to decide if you want to start a new lease, purchase a car or go carless. Then, you make monthly payments to be able to drive the vehicle. The monthly payments are based on the car's projected depreciation value over the lease term.

If your goal is to have the lowest monthly payments, leasing is likely your best option. Typically leasing offers lower monthly payments because they're based on a car's depreciation during the period, you're driving it instead of its purchase price. Leases are generally three years in length, so if you lease a brand-new vehicle, it will likely be under warranty for the duration of your lease. Leasing can also be a good option for those who want to drive something swanky or new every few years or for people who need an excellent car as part of their job. If you own a business, you can write off your monthly lease payment as a tax deduction.

Your next option is to finance the vehicle. When you finance a car, you take out a loan to purchase the Pacifica or whichever vehicle you choose and then pay back that amount you borrowed as well as interest and fees over time. You'll make scheduled payments to your loan financer, usually monthly, to remain in good standing on your car loan.

There are a few advantages to financing a car purchase with an auto loan. First, spending a large lump sum of cash upfront on a car isn't always the best option, especially if you have a family to support or a business to run, you may need that cash for unexpected expenses, like medical bills or urgent business expenses. Second, if you own a business, the finance costs can be tax-deductible. Third, making car loan payments on time establishes a finance track record and builds good credit. This is useful for the future if you need finance for other purposes, like a mortgage or business loan. Finally, once you repay the loan, the vehicle will be yours.

Since 1938, Gillman CDR has been family-owned and operated. Our sales staff will help you choose the perfect vehicle for your lifestyle. Next, you can sit down with our knowledgeable finance team, who will work with you to determine the best option for your budget. Please fill out our online finance application to quickly get approved and on the road today! If you have any questions, please don't hesitate to contact us.