When shopping for a car, the choice to buy or lease can be confusing. Take a look at the benefits of both options to see which is a better fit for your lifestyle—and your finances.
Full Ownership:
Once your loans are paid off, the car belongs to you with no strings attached. If you lease, you will have to go through
a buying or leasing process once your term ends in a couple of years.
Negotiable Down Payment:
Purchasing a car allows far more flexibility in down payments than leasing. You are able to put down what you can afford and borrow the remainder.
No Restrictions:
When leasing, there are set mileage and maintenance restrictions that you cannot exceed without paying a penalty. If you buy a car, there are no dealer restrictions on how you use it.
Freedom to Sell and Trade:
Once you own a car, you can sell or trade your vehicle at any time without penalty.
Modifications:
You can make modifications to your
car either as needed or as desired.
You cannot make changes to the car
if leasing.
Lower Monthly Payments:
Lease payments are typically lower than payments towards a car loan. This could help if you have a tight cash flow.
Under Warranty:
Since leasing only lasts a few years, expensive repair costs will most likely be covered under warranty for the duration of the lease.
Stay Current:
By having a lease that only runs a few years, you can consistently have
the latest in technology, safety and security features.
Tax Flexibility:
You only have to pay taxes on monthly lease payments. If you were to buy a car, you would have to pay the sales
tax within 30 days of the purchase.
No Depreciation:
Leasing a car means that when the contract is up, you are not stuck with
a car that has depreciated over the years you’ve driven it.