Should I Buy or Lease? | Palo Alto CA

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Should You Buy or Lease?

If you’ve been considering a new Volvo from our exclusive inventory, you’re not alone. Many residents from Palo Alto, San Jose, Redwood City and Fremont have frequented our inventory, and have landed in our finance office ready to sign on the dotted line. But which financing option should you choose — buying or leasing? What’s the difference between them? Which option allows the most freedom or financial benefits? Here at Volvo Palo Alto, our team has answered these questions before, so we thought we’d compare the two options below so you can decide which is best for you. Weigh the pros and cons of each, and remember, our finance experts are just a phone call away if you have any questions!

Why Lease a Vehicle?

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Minimal Upfront Cost

Leasing is very similar to renting — you’ll agree to make monthly payments on your new Volvo knowing that you’ll have to return your model to the dealership once your agreed lease period has ended. You might notice that sometimes the down payment for a lease is less than it would be if you were to buy, making your upfront costs reduced. Plus, our specials are updated with new lease offers every month, too, so it won’t be as tough on your wallet as you’re probably thinking.

Lifestyle Flexibility

Leasing your new Volvo affords you a certain degree of lifestyle flexibility that you can’t get when buying. Leasing periods, on average, last between 2-3 years (or 24-36 months), which are typically shorter than buying terms, and lessees are given 12,000-15,000 miles per year. (But there’s an option to purchase more miles if needed at signing.) Once your lease is over, it’s easy to return your lease to our dealership without the hassle of selling or trading. Plus, you always have the option to purchase your lease if you’ve fallen in love.

Warranty Protection

New cars leased by our customers often qualify for the entire length of the terms under their new car warranty. Many of our leases are 36 months or less — the Volvo New Car Limited Warranty provides coverage for four years or 50,000 miles, whichever comes first. That means your lease will be covered under warranty for the entire duration of your lease, and then some, so any damages or repairs that qualify under warranty won’t be your responsibility.

Why Purchase a Vehicle?

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True Freedom

Leasing certainly has its benefits, but only ownership gives you true freedom. Your Volvo is yours to sell, trade or keep for its lifetime without having to consult with your lender or part ways once the lease has ended. If you’d rather have a different exterior paint color, audio system, floor mats or otherwise, it’s your choice. Ownership offers you peace of mind and independence — and how can you beat that?

Financial Flexibility

Purchasing your Volvo will benefit your wallet long term. Ownership doesn’t mean that you have to finance the model — you can always pay in cash if you’re able to. But if you do choose to finance, once you complete your payments, that money is secured, including your down payment. When you lease, that down payment and subsequent monthly payments are lost when you yield your vehicle. You’ll see a better return on your investment when you choose to buy, giving you better financial flexibility.

No Mileage Restrictions

When you own your vehicle, you’re in charge of where you take it and for how long you drive it. You won’t be tied down with annual mileage restrictions (or obligated to pay the fees if you go over), and you won’t need permission to leave the country in your vehicle, either. When you own the car and you’re finished with your payments, you have complete autonomy from lenders.

If you’re ready to be the proud owner or lessee of one of our new models, or are interested in learning more about your lease-end options, feel free to contact us online or visit Volvo Palo Alto at 4190 El Camino Real, Palo Alto, CA 94306. We look forward to serving customers from Palo Alto, CA, near San Jose, Redwood City and Fremont.