Lease or Buy A Jeep Online from Soup to Nuts
LEASE YOUR JEEP
BUY YOUR JEEP
1. Ownership
The primary difference between buying and leasing a car is ownership. When you buy a car, you own the vehicle and can keep it for as long as you choose. When leasing a car, you’re essentially renting it on a long-term basis from the dealership for a specific period of time.
2. Monthly Payments
Many customers choose to lease a car because the monthly payments are approximately 30% lower than purchasing a car. Use AutoGravity’s car financing calculator to determine the differences between the payments.
3. Up Front Costs
When you choose to purchase a car, you’ll likely need to put some money down, often as much as 10% to get the best financing rates available. Leasing requires far less up front, and in some cases, even no money down. If your cash flow is tight, leasing offers some more flexibility.
4. Length of Ownership
Using “ownership” a bit loosely here, we mean the time that you have a car in your possession. When you buy a car, you can keep it for a year or you can keep it until the wheels fall off and you drive it into the ground. A lease is for a very specific time period, normally between two and three years. If you return the car early, there are often early termination penalties, so the time of “ownership” is a very specific duration.
5. Vehicle Return or Sale
Once you buy a vehicle, it’s your’s to do with as you please. When you’re ready to get rid of it, you can either use it as a trade-in or sell it on your own. With a lease, it’s a lot easier. You drive it back to the dealership, hand them your keys, and walk away. The downside is that when you do walk away, you won’t be any richer.
6. Future Value
You’ve heard the old adage, “buy appreciating assets, lease depreciating assets.” If you’ve ever wondered what that means, let’s break it down. The thought is that things that increase in value over time, like houses, should be purchased. You’re making an investment in which you could potentially make a future profit. Cars lose value over time. So the idea is that you would lease it since you would never make any money back on it.
7. End of Term
Whether you finance your purchase or lease your car, both options have a set time period during which you’ll be making payments. The great news with a purchase, is that after you’ve paid off the car, there are no more payments. This is the flip side of the future value argument. All of a sudden, you have a few extra hundred bucks each month. With a lease, you never get that luxury. You make payments until it’s time to return the vehicle.
8. Mileage
Leases come with a mileage limit as part of the agreement – normally between 10,000 – 15,000/year. When you return the vehicle after your lease is up, the mileage needs to be at or below the agreed upon limit or you’ll be charged an overage fee. If you have a long commute, drive as part of your job, or just like long road trips, keep this in mind when leasing or purchasing. When you buy, the car is yours to drive as far and long as you like.
9. Wear and Tear/Maintenance
If you’re pretty rough and tough on your cars, leasing may not be a great option. Keep in mind, it’s a long-term rental, which the dealership will then turn around and try to sell. If you return the car in poor condition, you’ll have to pay extra.
10. Customize
For most lease agreements, the car needs to be returned to its original condition prior to returning it. So if you like 20” rims or choose to add a short-shifter, all that needs to come off prior to returning the car. If you buy, you can add all the bling you want and never have to worry about taking any of it off prior to selling the car.
Can I use my bank or credit union to finance my purchase?
Yes, you can! We work with most US-based banks and credit unions so you can choose the financing and payment options that work best for you. When placing an order, you will be asked to provide the name of your bank, the amount of your loan, and your loan officer’s information, if applicable.
Currently we do not work with the following Banks and Credit Unions:
- Road Loans (Citibank and Santander)
- A+ Federal Credit Union
- Metabank
- Carfinance.com/Car Finance Capital
- Ally Bank
- Wells Fargo
- Chrysler Capital
- Ford Motor Credit
- Honda Financial
- Exeter Finance Corp
If I have bad credit, can I still finance my purchase through Carvana?
Yes, as long as you are 18 or older, make at least $10k per year, and have no active bankruptcies.
Will my Carvana Financing terms change?
With Carvana, you’ll receive real, personalized terms based on the information you provide. Your rates won’t change unless your information changes or your terms expire after 45 days.
How long are my Carvana Financing terms good for?
Carvana Financing terms are good for 45 days from the date you received them. If they expire, or your information changes, you can request new terms by resubmitting your application.
How are my financing terms determined?
Your terms are non-negotiable and based on your credit history, your individual income, and the price of the vehicle you’re looking at. Since vehicle price is considered, you will notice that your terms will vary depending on the vehicle you choose.
Can I pay more than the required amount for my down payment or monthly payment?
Yes, you can increase your down payment, monthly payment, and even pay off your loan early without any penalties or added fees.
What are my options if I can’t afford my down payment?
Your lowest possible down payment will vary depending on the vehicle you choose, and your minimum down payment and terms are not negotiable.
Adding a trade-in to your purchase may help offset the cost of your vehicle and reduce your minimum down payment. You can also check to see if your bank or credit union will offer you financing with a lower down payment.
When is my down payment due?
If you are in a local market, your down payment is due at the time of delivery if you choose to accept the vehicle. Customers outside of a local market will pay their down payment prior to shipping the vehicle. Down payments are fully refundable within your 7-Day Money Back Guarantee if you chose to return the vehicle.
Can I split my down payment into multiple payments?
Unfortunately, no. Your down payment is processed as a single transaction and cannot be divided into multiple payments. If you accept the vehicle, the down payment is processed when your vehicle is delivered or picked up.
When is my first monthly payment due?
If you financed your vehicle with Carvana, your first monthly payment is typically due 28-30 days after you accept your vehicle. You can find your exact due date inside your contracts.
At the end of your 7 Day Money Back Guarantee, you’ll need to go to Bridgecrest.com to set up your account. From your Bridgecrest account, you’ll be able to set up auto payments, make one time payments, and view your payment history.
Does Carvana offer financing if I choose to purchase elsewhere?
Carvana Financing can only be used for vehicles sold on Carvana.com.
Can I use a credit card for my down payment or monthly payment?
Unfortunately, we do not accept credit card payments. However, there are a couple of different ways to pay the down payment: either ACH withdrawal from your checking or savings account or a cashier’s check.
My down payment is too high. What are my options?
Your down payment is based on the results of your Carvana Financing application and is based on your credit history, yearly income, and the price of the vehicle. Some options to lower your down payment include:
- Do you have a trade-in vehicle you could apply to your purchase? Any positive trade credit will be applied towards your down payment. You can fill out the trade application here.
- Since vehicle price is a factor, try looking through lower priced inventory to see vehicles with lower down payments.
- Since yearly income is a factor, do you have any other verifiable income you can add to your financing application? If so, you can update that here.
- Carvana accepts auto loans from most third party lenders. If you receive better terms with a local bank or credit union, you can apply that loan to your Carvana purchase.
If I get pre-qualified through Carvana, does it impact my credit?
No. When you pre-qualify with Carvana, you see real, personalized terms without affecting your credit score. Though your terms will not change, we do complete a formal credit inquiry when you schedule your delivery or pickup.
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