Leasing vs. Buying a Vehicle
Since buying a car is one of the biggest purchases you can make, it's wise to take a look at all your options. Cole Ford Lincoln is here to help you decide which option is the best fit for you. If you buy a car, you'll have more flexibility and freedom since the car is yours to keep or sell. Although this option is usually more expensive than leasing, you'll own it after the loan term is met and the vehicle is paid off. To help with your decision, below you will find a list of pros and cons of leasing vs buying to ensure that you make the right decision for you based on your personal preference and lifestyle.
- Leasing offers a lower monthly payment, with very little to nothing down at the time of signing.
- When you lease, you can get a nicer, newer car than if you buy with the same monthly budget.
- Reduced maintenance cost due to the vehicle’s factory warranty.
- With a lease, you can trade it in for something else when the lease term is up, no questions asked
- Return with no hassle at the end of your lease.
- On a lease, you're paying for the difference between the car's current price and its expected value.
- At the end of the lease term, you have to return the car. You hve the option to buy at that time as well.
- Typical mileage for a lease is 10,000 to 12,000 miles per year. You could pay overage charges at lease end.
- Lease contracts are more complicated than purchase contracts and are filled with unfamiliar terminology.
- If you fall into the cycle of leasing cars over and over, you'll end up spending more money over time.
- At the end of your lease, you are required to turn the vehicle in a good, non-altered condition.
- It could be expensive to terminate your lease early.
- When you buy, there are no mileage limits so you can drive as much as you'd like.
- If the vehicle is yours, you can modify it at will - it's your choice, you own it.
- Save money in the long term since you will eventually pay the car off.
- If you buy a car and decide it's not right for you, you can sell it— even if you're financing it.
- When you buy a car, most manufacturers ask for a down payment of 10% to 20% of the value of the vehicle.
- Car payments are higher than lease payments.
- Once you are outside of your factory warranty, you'll be paying for all upkeep out of pocket.
- Face possible trade or sale issues when you decide to get your next car.
- When you drive a new car off the lot, it begins depreciating rapidly.