Buying vs Leasing

When it comes to buying or leasing a car, the options can be confusing. To help you make an informed decision we have provided the information below. We hope you find it informative and useful.

When you buy the new or used car you pay for the entire cost of the vehicle. When you lease the new or used car, you pay for only a portion of the vehicle’s cost, which is the part you use during the time you are driving it.

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Buying

When buying a vehicle, you own the car. You can either pay in cash or finance it, and the dealer will usually require a down payment. If you decide to finance, you have obligations to the finance company to pay back the lender and if not paid on time, they have the right to repossess it. When you buy a car it is an investment; once the payments are completely paid off the car is 100% yours. Since the car is yours, the future value is whatever you can get for it if you decide to sell it.

Leasing

Leasing can be a very good way to drive a dependable vehicle without paying as much for it. In a lease, you do not actually own the car. The leasing company owns the vehicle, which means that you are paying for the use of it. This means that your payment per month is significantly less than if you were to buy it. Leasing usually does not require any up-front costs but this means that at the end of the term of the lease you do not get any money back. Most leases have wear and tear guidelines as well as mileage limits. These could cost you more money when the vehicle is turned back in.

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