Buying vs Leasing

 

When it comes to buying or leasing a car, the options can be confusing. We’re here to help you make an informed decision which is why we’ve

provided the information below!


WHO OWNS IT?

LEASING: You do not own the vehicle. You’re paying for the use of the vehicle – the financial institution that you leased it through owns it. This is usually why you pay less per month to lease, than if you were to buy.


BUYING: Whether you pay cash or finance, the vehicle is yours. If you’re financing, you will have to meet the financial obligations of the lender. If you do not, they have the right to repossess.

  • In some cases, it may be possible for you to lease to own. This is an especially good option for drivers with poor credit.

WHAT ARE THE UP-FRONT COSTS?

LEASING: Leases do not often require any type of down payment, however, many require a first month’s payment, security deposit and other fees. As with a purchase, the more money you put down upfront, the lower the monthly payment will be.


BUYING: If you plan on financing the vehicle, the bank will most likely request a down payment. This is usually based on requirements by the lender and credit score. You also have the option to use the value of your trade-in as a down payment option. If you’d like to see what your vehicle may be valued at currently, click here.

WHAT ARE THE FUTURE VALUES?

LEASING: With leases, you will have mileage limits and wear and tear guidelines. If exceeded, this could cost extra money when the lease is turned back in. In some cases, the value of the leased vehicle is worth more than what the manufacturer had thought in your contractual agreement. In this case, you would be able to put that equity towards another leased unit.


BUYING: When you purchase a vehicle, it will be worth whatever the market deems at that time. Many factors go into the value of a vehicle, including: how well it was maintained, state of the economy, mileage, and more.

WHAT HAPPENS WHEN I END MY PAYMENTS?

LEASING: When you are finished making payments on a leased vehicle, you have different options. You may purchase the vehicle after the lease is due, lease a new unit, or walk away. Ask your Account Executive for details and suggestions on what may be best for your budget.


BUYING: When you’ve paid the entire amount of the contract, you own the vehicle. The lending institution will send you a lien release indicating that you’ve paid off the vehicle in its entirety.