You need a new vehicle. But is it better to lease or buy a car? Which makes more sense? What’s the difference between leasing and buying a car? Our friendlyFinance Department has helped numerous customers just like you solve their own lease vs. buying conundrums. Read our handy guide below to find out which is right for you.
Whether to lease or buy a car comes down to how much you can afford to spend upfront and what your monthly budget is. Generally, leasing saves you money up front, while buying may save you in the long run. That’s the main difference between leasing and buying a car.
When considering vehicle financing, new vehicle ownership surely comes with many well-known advantages, most associated with entire ownership of the car or truck. You may not be aware, however, there are also a few nice advantages to leasing, as well. It’s imperative to consider all financial aspects including buyout payments, down payment, monthly payments, term length, interest rate, depreciation, and maintenance & repair costs, before making a decision. A careful audit of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the ideal choice between leasing and buying a new car or truck.
Car lease payments are often times less expensive in comparison to car financing and loan payments as the typical lease structure is pretty much renting with the option to purchase at the end of your lease term. Just consider when leasing that you are going to need a healthy credit score, and will be asked to carry collision and comprehensive insurance, though the same can be said for the lower rate auto loans. Though it may increase monthly payments, it is also best to get a model with the features you want or need, as personal satisfaction is often priceless.
Auto leasing often includes regular vehicle maintenance & repair. It is important to keep this in mind when projecting monthly costs of ownership vs leasing. Regardless of what make and model you buy, mechanic bills are an uncertain cost that can rapidly add up. And for those who are not certified mechanics with a hydraulic jack and full toolset in the garage, leasing might be the best option for peace of mind.
Generally speaking, a new car or truck lease saves money in the short term with lower monthly payments, while buying earns you a long term investment, meaning absolute ownership of the value of the car at the time it is traded, sold, or paid-off. For best savings on a lease, avoid lease return fees for going over mileage, terminating the vehicle lease early, or putting on excessive wear and tear. For maximum investment on a purchased/financed vehicle, you can pay it off in a shorter term and also avoid excessive wear and mileage.
Lease | Buy | |
Maintenance & Repair Costs | Typically Included | Not Included |
Down Payment | Smaller Down Payment | Larger Down Payment |
Monthly Payment | Smaller Monthly Payments | Larger Monthly Payments |
Ownership | No Ownership | Pride of Ownership |
APR % | Credit-Based | Credit-Based |
Finance Term | Approx. 2-4 Years | Approx. 3-6 Years |
Savings/Investment | Short Term Savings | Long Term Investment |
Vehicle Customization | Not Available | Available |
Pre-Owned Vehicles | Not Available | Available |
Poor Credit Financing | Not Available | Available |
New Vehicles | Available | Available |
We make it easy for you to get behind the wheel of your next vehicle whether you lease or buy a car. You can evenapply for financing online. We’re just a short drive away from Lee's Summit, but you can also browse our entire inventory from the comfort of your own home! So,contact us today!
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