Buying Vs. Leasing a New Car in Racine, WI

January 13th, 2025 by

Auto financing options in Racine, WI

With years of experience at Frank Boucher Cadillac of Racine, we know that drivers have questions about new model features, certified service, finance options, and whether to lease or buy a car.

Whether you’re a seasoned veteran or a first-time driver of the road, debating whether you want to lease or buy comes down to many factors, from aiming for long-term ownership to lower monthly payments. Here’s everything you need to know about purchasing or leasing a car with Frank Boucher Cadillac of Racine!

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Pros of Leasing a Car

If you’re in the market to lease a Cadillac, there are many benefits and advantages that buying doesn’t, making it a stellar option for buyers who want low financial commitment while you drive a car you love!

Lower Monthly Payments:

Leasing a vehicle reduces monthly costs and eliminates the need for a sizable down payment compared to buying. Your money goes toward the vehicle’s depreciation rather than the principal.

Access to Newer Models:

Every driver wants to feel the iconic Cadillac comfort with cutting-edge technology that Cadillac loves to give their vehicles. When leasing a car, you have a broader net to choose from, meaning you can drive off the lot with a CT5 or an Escalade fresh off the lineup with advanced features!

Warranty Coverage and Lower Repair Costs:

A benefit drivers love when they lease a new vehicle is the manufacturer’s warranty, which usually covers repairs, giving you peace of mind when you drive!

Easy Returns and Stress-Free Market:

When your lease is up, you only need to return your car to the deal and choose your next ride to drive off in the sunset. Also, unlike buying, you don’t have to worry about the vehicle’s market or trade-in value as you only rented the Cadillac, meaning the dealer has to consider the value.

Cadillac leasing is a fantastic way to get behind the wheel of their iconic lineup. With multiple specials and deals, there’s no better time to try out the new CT4, the flagship Escalade, or to dip your toe in their EV vehicle, the LYRIQ!

Leasing is a perfect way to drive a luxury car at a low cost if you have a tight budget and a way to test out models without the financing commitment purchasing has.

Cons of Leasing a Car

While leasing a vehicle has excellent perks, if you’re a driver who wants to drive at a reduced cost, there are also cons you should consider before heading to the dealership.

No Ownership Equity:

At the end of the day, when you lease a car, you don’t own it. You rent the vehicle from the dealer, and your monthly payments don’t go to ownership, which means you’re out of a set of wheels when your lease is up.

Mileage Limits:

Most leases have fees and limits, and one of them will hinder how far and often you can drive. With a limit on how many miles you can put on, you don’t get the freedom to travel as far, and you’ll have to pay more if you go over.

Customization Limit:

When leasing a car, you don’t own it, meaning if you can’t give it a new coat of paint, a suspension, or body lift, or if you want to add a sunroof.

Early Termination and Wear and Tear Fees:

If your XT6 isn’t right for you, many leases require you to pay an early termination fee. If you turn in your Cadillac with excessive wear and tear, you’re looking down the barrel of more fees.

Leasing can get you on the road in a newer model, but it could also involve fees and limitations that traditional buying doesn’t, making drivers reconsider a lease.

Pros of Buying a Car

Ownership and Equity:

When you purchase a car, you own it, which means you can build equity in it and potentially earn more money from it when you trade or sell it.

No Mileage Limit:

When buying a car, the road is as open as you want. You don’t have to limit your miles, so you can go on a cross-country adventure whenever you want!

Freely Customize Your Ride:

Drivers love that once they purchase the car, they can customize their ride however they want. For example, if they bought a black XT6 and want to change the color or add modifications, they can!

No Payments After Your Loan:

Paying off your loan comes with a fantastic prize: no more payments! Without monthly costs associated with your loan, you’ll feel a financial weight lifted off your shoulders, allowing you to focus on selling, trading, or other investments.

Many drivers opt for the traditional vehicle buying route, as it gives them the freedom of ownership and puts them in charge of customization, where they go, and what to do next once the loan is gone.

Cons of Buying a Car

Higher Monthly Costs and Down Payment:

Purchasing a car means you’ll have to build a solid budget and have a significant down payment ready to help secure an excellent interest rate and terms for your loan.

Maintenance and Repairs:

When you buy a new XT4, your warranty could expire, leaving you liable for minor or significant repairs!

Market Uncertainty:

Since you own your Cadillac, you’ll have to keep an eye on its market and trade value, opening you to take a loss when you try to put it into another car.

Limited Inventory:

When drivers talk about leasing vs. buying a car, many mention that if you want to purchase a vehicle, you’ll have a limited number of models to choose from, which means you’ll have a lesser chance to drive off with current tech and safety features.

Which Works For You?

Each has its benefits, as leasing a car will pave the way for reduced costs, newer models, and easy returns while purchasing your vehicle gives you complete ownership, no mileage limit, and customization that a traditional lease doesn’t give you.

So, when debating leasing vs. buying a car, consider your budget, driving habits, and long-term plans to find the best fit. You can also stop at Frank Boucher Cadillac of Racine in Racine, WI, and talk to our friendly staff to help you determine the perfect route!

Auto Financing FAQs

What is the difference between a lease and financing?

The main difference is leasing rents the car, while financing is a path to ownership. When you lease, you make monthly payments until the duration ends and start again when you lease another vehicle, while financing ends with ownership once the loan is paid off.

How does a car lease work?

With Cadillac leasing, you can choose which model you want to lease, work out your monthly payments, and explain the terms and limitations. Once you both sign off on the form, you can drive off into the sunset!

Should I buy or lease a car?

Leasing vs. buying a car depends on your budget, driving habits, and long-term plans. If you’re on a tight budget and don’t drive often, opt for a lease, but if you need a vehicle for frequent travel and complete ownership, purchase the car.

Is it worth leasing a car if you plan to buy it later?

Yes! Many leases allow you to buy the vehicle outright for a discount after the lease ends. So, check your leasing contract and talk to your dealer about purchasing the car once your lease is up.

What are the steps involved in returning a leased car?

Many dealers send reminders when it’s time to return your leased car. Set an appointment to ensure you have time to gather your original leasing paperwork, keys, and key fobs and clear out your Cadillac of personal belongings.

Once you return the car, the dealer will determine if you need to pay mileage, wear and tear, and other fees, so it’s best to have your vehicle in top shape before you return it.

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