Buying vs Leasing … what’s better for you? See how the two compare below and let us help you get into your next vehicle!
There are many factors when deciding between buying or leasing a vehicle. Buying requires higher monthly costs but you get to keep the car forever. Leasing gives you flexibility with shorter and less expensive terms, but you are in a constant monthly payment and never own the car. See how the two compare below …
BUYING – you own the vehicle and keep it as long as you want
LEASING – you don’t own the vehicle and return it at the end of lease
BUYING – usually higher due to loan amount
LEASING – usually lower as you’re paying only for the vehicle’s depreciation during the lease term
BUYING – the car is yours and you can sell or trade at any time
LEASING – costly charges will apply
BUYING – you cannot return the vehicle after three days or 300 miles
LEASING – at the end of the contract you return the car, pay any applicable fees, and walk away
BUYING – drive as much as you want
LEASING – most leases limit the number of miles you can drive per year and overages result in added fees when you turn in the vehicle
BUYING – the vehicle is yours
LEASING – you’re responsible to repair dents and dings, plus excessive wear and tear will incur extra charges at return
BUYING – you can modify to your heart’s desire
LEASING – no modifications can be made and the vehicle must return as it left
BUYING – at the end of the loan you have no further payments
LEASING – at the end of the lease you can negotiate purchase of the vehicle or lease another new car
For some of us, leasing can be much more appealing than buying. The monthly payments are usually lower because you’re not paying back any principal – you’re just borrowing the difference between the car’s value when it’s new and the car’s residual (expected value when the lease ends) plus finance charges.
You can drive a new, higher – priced, better – equipped vehicle than you might otherwise be able to afford, your vehicle will have the latest active safety features, the lease may include free scheduled maintenance, there could be big tax advantages for business owners, and at the end you just drop off the car at Price Simms Family Dealerships.
Contact our team if you have any questions or need help getting started.