• HERSRUDS OF BELLE FOURCHE PHONE:: (888) 529-8004
  • HERSRUDS OF STURGIS PHONE:: (888) 713-6848

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Buying Vs. Leasing

Auto Lease vs Buying a Car - Hersrud Family Dealerships in Sturgis, SD and Belle Fourche, SD

When it comes to buying or leasing a vehicle the options can be confusing. To help you make an informed decision we have provided the information below. We hope you find it informative and useful.

When you buy a new or used vehicle you pay the entire cost. When you lease a new or used vehicle, you pay for only a portion of the vehicle's cost, which is the part you use during the lease period.
Buying

Who Owns It

Whether you pay for the vehicle or equipment with cash, or finance it and make monthly payments, either way it's yours. Of course, if you're financing it, you'll have to meet the obligations the lender requires, like a certain down payment amount and timely monthly payments. If you don't, they have the right to repossess it.

Up-front Costs

If you're financing it, the bank will probably require a down payment. You can also trade-in another vehicle or equipment and use any equity towards your down payment. The amount of the down payment is usually based on the lender's requirements and your credit score. 

Future Value

Your vehicle or equipment will be worth whatever you can sell it for in the future and that depends on how well you maintain it. (Be smart and protect your investment with regularly scheduled maintenance by a factory-authorized facility!)

End of Payments


Once you've paid off what you owe on your contract, that's it. Your vehicle or equipment is 100% yours. The lending institution will send you a Lien Release as proof that the vehicle is completely paid off and all yours.
Leasing

Who Owns It


You do not own the vehicle or equipment when you lease. You're paying for the use of the vehicle, but the finance institution that you leased it through actually owns it. This is usually why you pay less per month in a lease than if you were to buy the vehicle or equipment
 
Up-front Costs

Leases often do not require any type of a down payment. All you usually have to pay is the first month's payment, a security deposit, the acquisition fee and other fees and taxes. But, as with a purchase, if you want to lower your monthly payments you can always pay more upfront.

Future Value

In most leases you don't end up owning it so you don't end up selling it. That's the financial institution's job. Although you may have mileage limits and wear and tear guidelines, if you exceed them it could cost you extra money when you turn your vehicle or equipment in. 



End of Payments

Most people return the vehicle or equipment at the end of the lease term. But some like to purchase it during their lease or at the end. Others like to trade it in before their lease is over. Just ask us about these different options before signing any paperwork and we'll make sure you have your lease set up the way you want it.

Best Cars to Lease

The best vehicle or equipment
to lease are those with the best book value after the term of the lease. Since they depreciate less, you pay less. Review the lease ratings to see which ones retain their value.

Contact

Hersruds of Belle Fourche

10961 US Highway 212 West
Directions Belle Fourche, SD 57717

  • Sales: (888) 529-8004
  • Service: (877) 511-3201
  • Parts: (888) 515-2216

Contact

Hersruds of Sturgis

2651 Whitewood Service Road
Directions Sturgis, SD 57785

  • Sales: (888) 713-6848
  • Service: (888) 714-2803
  • Parts: (888) 697-0285