Financing vs. Leasing a new Volvo

Find your ideal payment method at Ray Price Volvo Cars in Stroudsburg; Serving Mt. Pocono and Bartonsville, PA

Ray Price Volvo Cars strives to be more than a destination for the latest Volvo luxury cars and SUVs; we're committed to a first-class experience no matter where you are in your journey. That means a streamlined car-buying process, compelling offers and incentives, and financing opportunities tailored to your needs and preferences. Part of our commitment involves helping determine whether a loan or lease is a better fit for you. So, here's a quick overview of each method's distinguishing characteristics.

The primary distinction between a loan and a lease is equity. Financing involves paying down the principal balance, after which you will own the vehicle outright. A lease is like renting, with some notable differences-you are paying to use the vehicle for a set amount of time and have a few options at the end of the term.

Benefits of a Volvo Lease

There are several advantages to a lease many Saylorsburg drivers may find more appealing compared to a loan. For example, leasing generally costs less than financing over the same length of time. The down payments and monthly payments are typically lower. And since sales tax is levied on the individual payments and not the vehicle's full price, you'll pay less in this regard as well.

The short-term nature of a lease means you're not tied to a lengthy commitment-you can upgrade sooner and enjoy the latest features (and new-car smell) more often. Leasing is a great way to "try before you buy." If you love the vehicle and want to keep it, it's easy to transition to a loan. But if your needs or preferences change, you can switch to a different model at lease-end.

Finally, there's the lease's residual value. Before you sign a lease, the lessor will give you an estimate of what the vehicle will be worth by the end of the contract. If the actual resale value exceeds this number, contract terms allow you to purchase the vehicle at what is essentially a discount.

There are a few important stipulations to consider before choosing a lease. Leased vehicles have mileage limitations with fees for going over, and terminating the lease early may incur significant charges. Lessees are prohibited from making modifications and are responsible for damage beyond "normal wear and use."

Benefits of Volvo Financing

Financing a new Volvo is typically a longer commitment, and the payments may be higher. You will also be responsible for any repairs after the conclusion of the new vehicle warranty, though extended warranty options are available. However, you are the vehicle owner and will eventually receive the title. You can sell it at any time and make any changes you wish. Additionally, you don't have to worry about exceeding your allotted miles.

Learn More at Ray Price Volvo Cars

If you have any questions about financing and leasing or any of our new Volvo models, please feel free to contact or visit Ray Price Volvo Cars in Stroudsburg at your convenience. We're also happy to help you custom order your ideal Volvo model. And if you're thinking about selling your current vehicle, we'll buy it from you, even if you don't buy from us. We're looking forward to serving you.