Should I Buy or Lease a Car?

When wanting a new car, ask yourself, should I buy or lease it? But what's the difference between lending and leasing? Is it a one-size-fits-all solution, or are other factors involved? In this lease vs buy analysis, we'll show you the pros and cons so you can make an informed decision!

Do You Want to Own Your Vehicle?

It might seem odd, but it can answer the "Should you lease or buy a car?"

If you want ownership of your car, buy it. Purchasing means you own the vehicle while you pay off your loan.

If you don't want to own your car and wish to switch it out every few years, lease it. Leasing means you're borrowing the car for a specified time and can choose another vehicle when you return it.

Buying compasses the traditional route of searching for a loan, securing a sizable down payment, and dealing with the market when you want to sell or trade.

Leasing lets you drive your car in its most trouble-free years, doesn't require massive monthly payments, and usually has maintenance covered through the manufacturer's warranty.

New driver being handed keys after buying a new car 

But, if you lease, you'll have a contract with terms you must follow.

These could include:

  • Mile Limit
  • No Customization
  • No Excessive Wear and Tear       
  • And More

While purchasing your car gives you more freedom on packages, how you treat it, and no limits on your adventures, leasing doesn't.

How Do You Want Your Monthly Payments?

You might want your monthly payments as close to zero, but only one can aid with low charges.

Leasing usually has lower monthly payments as the loan is shorter, with you paying the vehicle's depreciation with interest and other fees.

Buying has higher costs because the loan you take out covers what the down payment couldn't. Instead of paying off the depreciation for a specific time, purchasing means you pay interest, fees, and other charges for the entire original principal.

Do You Want a Warranty to Ease Repairs?

While purchasing a car, if not new, one usually must rely on certified pre-owned warranties to cover any maintenance costs. On the other hand, leasing has most repairs covered.

Since the loan terms to lease are shorter than buying, the manufacturer's original warranty may cover any maintenance that may occur.

If you buy, you'll have to cover any damage, repairs, or maintenance your warranty doesn't cover.

What Are Some Quick Differences Betweeing Buying and Leasing?

Selling Buying lets you sell or trade to a dealership or friend. But you have to venture into the fluctuating car market. Leasing lets you dodge the car market as you return your car when the contract’s over, but you won’t make money from your vehicle.
Mileage Buying gives you the freedom to travel as far as you want. Leasing restricts your movement by limiting the amount of miles you can build.
Wear and Tear Buying lets you build up extensive wear and tear, but it’ll lower the resell value. Leasing holds you responsible with the dealership with extensive wear and tear, adding more charges to fix it.

Which Works for You?

Before you type "Best lease deal," ask yourself which works. Calculate a budget, check your finances for a down payment, and see if you should buy or lease.

For more information, contact the Glockner Family of Dealerships in Southern Ohio!