At Montrose GM Superstore, a lot of customers ask our finance center about the benefits of buying vs. leasing a car. There’s really no wrong answer to this question, however. It’s all dependent on your situation and what you’re looking for, whether it’s new or used. To give our Hermitage, New Castle, and Mercer area customers an idea of the differences between the two options, we put together this quick leasing vs buying guide.
Leasing vs Buying: The Budget
One of the biggest things people take into consideration when choosing their next vehicle is budget. Ask yourself how you want to pay each month and consider that, when you lease a car, you’re more likely to have a lower monthly payment than when you buy the same car. This is because buyers are financing the entire cost of the car, whereas lessees are only financing the cost of depreciation over the course of their lease.
Leasing vs Buying: The Restrictions
Something else to consider is how much freedom you want to have with your car. Leasing a car often comes with agreed-upon yearly mileage limits and going over those limits may result in a fee. Lessees also cannot customize their car in any way that’s not removeable, and are held to their lease terms, meaning they usually can’t trade in their car before the end of their contract.
When you buy a car, on the other hand, you own the car, so you’re free to do with it as you please. You can drive as many miles as you want every year and customize as you see fit. You’re also welcome to trade in your car at any time and put that value towards your next car.
Lease vs Buying: The Upgrades
A huge draw towards leasing a car is that you get to upgrade to the newest model every couple of years. When your lease is up, it’s easy to trade your car for the current model year or a different model altogether. Because lease payments are often less than they’d be if you bought, you can put that extra budget towards that cool feature you really want or an upgrade to a higher trim level. This means you’re always driving a car with the most in-vogue style and up-to-date technology and safety features.
On the other hand, when you buy a car, payments can last up to six years or more, and you’ll probably want to hold on to your car even longer. This means that over time, your car may grow gradually outdated.
Leasing vs Buying: The Ownership
The last topic to consider is whether or not you want to own a car. Keep in mind that lease payments don’t result in ownership. At the end of your lease, you have the option to lease a new car or buy out your current car, either way, your payments will continue. When you buy, however, you may have larger monthly payments, but each and every dollar will be equity in your car. When you pay off your loan, your payments will end until you’re ready to buy your next car.
Will You Buy or Lease Your Next Car?
If you’re still trying to decide if you should buy or lease your next car, contact Montrose GM Superstore. Our finance center team has years of experience helping customers in the Hermitage, New Castle, and Mercer areas make this decision and can help you, too. Contact us to learn more about leasing vs. buying now!