Leasing vs Buying

New Car Leasing vs Buying

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.

Lease or Buy a Car – Which is Better?

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.

Advantages of Buying

  • Less Cost in the Long Term – You will spend less money in the long term when you buy instead of lease.
  • Unlimited Mileage – Do you intend to do a lot of over-the-road travelling outside the Kansas City area? It doesn’t matter when you buy. Rack up as many miles as you need.
  • You Own it – When you buy your vehicle, you own it. That means you have equity. This is the most obvious difference between leasing and buying a car.
  • Make it Your Own – Customize your car however you want. It’s yours.
  • Sell it If You Want To – Sell your vehicle whenever you choose.
  • More Financing Options – More financing options open up to you when you choose to buy.

Advantages of Leasing

  • Lower Sales Tax – In most states, leasing a vehicle drastically lowers sales tax.
  • Simpler Trade-In Process – Just turn your car in at the end of the lease and start a lease on a new one.
  • Lower Monthly Payments – This is the most important factor to many Overland Park drivers who are trying to decide or lease or buy a car.
  • Warranties – Leased automobiles are always under warranty, as long as you stay under the mileage limit.
  • The Latest Features  – Because you’ll be in a brand-new vehicle every couple of years, you’ll always have the latest feature options at your disposal.

Leasing vs Buying: Ownership

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.

leasing vs financing a new car benefits

Monthly Payments

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.

why leasing a car is smart

Maintenance & Repair

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.

analysis of leasing vs financing a car

Savings vs Investment

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

Lease or Buy a Car – Ask Our Finance Department

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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Google Feb 18, 2021

I recently purchased a 2021 Nissan Rogue from Jeff Catania and I love my new car. Jeff showed me a few options and explained everything really well. I appreciated all his help and look forward to continuing to do business with Lee's Summit Nissan.

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Google Feb 17, 2021
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Google Feb 16, 2021

Wonderful, fast service! Love this dealership.

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Google Feb 15, 2021

Everyone was pleasant. My monthly payments were made comfortable for me, so that I can afford them. I love my new Nissan. I feel satisfied.

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Google Feb 6, 2021

Justin was absolutely the best. Everyone was very attentive ensuring all our needs were met and satisfied. Nothing was high pressure (which I love)! Justin went put of his way to find the exact car I wanted even after I changed my mind at the last minute. If you suffer from car sales paranoia like I do....Justin is your guy!

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