Automobile Tips

Buying vs. Leasing a Car

Choosing to buy or lease a vehicle depends on personal preference and lifestyle factors.

Here are some pros and cons to help you determine which choice is right for you:

Leasing

• Lower monthly payments
• Lower down payment
• Better car for less
• Lower maintenance costs (factory warranty covers most repairs with 3-year lease)
• New vehicle every 2-3 years
• No trade-in worries when lease ends
• Only pay tax on financed portion of vehicle
• Can never own vehicle
• Mileage is normally limited to 10,000-15,000 miles annually
• Confusing contracts
• More expensive over time
• Routine wear and tear becomes pricey
• Difficult to end contract of lease

Buying

• Do anything you want with vehicle; it's yours!
• Makes more economic sense
• Unlimited usage (no additional fee)
• Sell whenever you please
• Higher monthly payments
• Higher down payment
• Responsible for maintenance costs after warranty voids
• Trade-in and selling hassles
• Value depreciation

Various lifestyles go hand in hand with leasing. If you often entertain business clients and are looking to impress them, leasing gives you the opportunity to drive a luxury car for less. Others may simply like the idea of driving a brand new car in as little as two years. At the end of the day, leasing isn't just about the money.