Is leasing a new Mazda a better deal the financing?

When it comes to paying for your new Mazda, there are three primary options: financing, leasing, or paying cash in full. But which choice is best for your preferences and budget? Since paying upfront is self-explanatory and the least common option, we'll go over the benefits and differentiating attributes of the remaining two methods in this blog.

To quickly summarize, the main distinction between a loan and a lease is vehicle ownership. When you finance a vehicle, you are the owner and will eventually receive the title after your last payment. And with a lease, you are essentially renting a vehicle for a predetermined number of months, typically 36, after which you have a few options.

Leasing vs. Financing a New Mazda

Leasing offers a few benefits that could make it the preferred choice of many Norwood drivers. For example, a lease's shorter duration makes it easier to upgrade sooner and enjoy the latest automotive features and tech more often. Additionally, a lease will typically cost less than a loan over the same span, thanks to smaller monthly payments. And since Massachusetts only charges tax on the monthly payment and not the full vehicle price, you'll pay significantly less in that regard as well.

At the conclusion of the lease, you can upgrade to a new Mazda or purchase the leased vehicle if you wish to keep it. And you may find the latter a worthwhile option, especially if the vehicle's resale value ends up exceeding its estimated residual value since you'll be able to purchase the vehicle at a discount. And by choosing either of these options, you'll qualify for the Loyalty Disposition Fee Waiver Program, which waives the typical $350 turn-in fee.

Leases do have some restrictions that are important to consider when choosing your payment method. For instance, there are mileage limitations to protect the resale value, and you can't make any modifications to the vehicle. Also, lessees are responsible for damage to the vehicle beyond "normal wear and tear," but there are coverage options available at the beginning of the lease to mitigate charges.

With a car loan, the commitment is usually longer, payments can be higher, and tax is levied on the vehicle's full price. However, you will own the title outright after the last payment, you can customize the vehicle to your liking, there are no yearly mileage limits, and you can sell the vehicle at any time.

Finance or lease a new Mazda near Dedham, Westwood, and Braintree

Reach out to Prime Mazda Norwood if you'd like more in-depth information about leasing or financing your next Mazda. Additionally, we encourage you to visit our New Vehicle Specials page to check out the latest Mazda loan and lease option. And if you'd like to experience Mazda's premium accommodations, amenities, and performance for yourself, we invite you to come see us for a test drive. We'd love to give you a tour.
Source: blog