Buying vs. Leasing a Car / SUV
Deciding whether to buy or lease your next vehicle is one of the most common dilemmas faced by car shoppers. While you’ve probably heard these terms used interchangeably, both options are quite different and offer their own unique advantages and disadvantages. Our team at the Rizza Auto Group has created this insightful guide that helps compare buying vs leasing to help you make a more informed decision. Our locations each offer a team of dedicated finance professionals who are standing by to help you get behind the wheel of a vehicle that both your head and heart can agree on. Check out this informative guide that will help you decide whether it makes more sense to buy or lease your next vehicle!
Benefits of Buying a New Vehicle
Flexibility
While a lease contract has all sorts of restrictions, purchasing your new vehicle means that you’ll have the freedom to drive as many miles as you’d like! Additionally, you’ll have the flexibility to personalize or modify your vehicle with parts or accessories to match your personal preferences. Lease contracts have plenty of restrictions that prohibit you from customizing your vehicle since you don’t own it.
Affordable Payments
Compared with the payments on a 36-month lease, purchasing your vehicle with a longer 72-month or even 84 month finance contract can be the best way to enjoy lower monthly payments on your vehicle. Along with lower interest rates, our team can help tailor an extended-term loan for just about any type of buyer. Check out our handy estimate payment tool to help get a better idea of which financing option is best suited to your financial needs.
Outstanding Finance Rates
Provided you qualify, your new vehicle could be eligible for exclusive financing rates with low APRs on your next new vehicle purchase. Considering how low these rates can be, it’s often a more savvy financial decision to purchase your new vehicle – even if you had thought about paying the full purchase price for the vehicle in cash!
Ownership Equity
After you make your final payment, your new vehicle is 100% yours! You can continue to drive it payment-free for years to come or leverage your equity position as a down payment when you’re ready to upgrade to your next vehicle.
Benefits of Leasing a New Vehicle
Affordable Lease Payments
When you lease a new vehicle, you’re only paying for the portion of the vehicle’s lifespan that you’re actually using. For example, let’s say a given new vehicle is going to have a usable lifespan of roughly 10 years. When you lease it, your monthly payment is based only on the first 2 or 3 years (depending on your lease term) that you’ll actually be driving it. This saves you plenty of money in the long run.
Low-Cost Repairs
In the vast majority of situations, your leased vehicle will be protected by its factory warranty coverage during the duration of your lease term. Should any problems arise, you’ll be protected and won’t have to pay out of pocket for covered repairs. This allows you to drive worry-free for the entire duration of your lease.
Flexibility
The twists and turns of life can sometimes lead to changes in your lifestyle. By leasing your vehicle, you’ll enjoy all the perks that come from changing to a different model every few years (depending on the term of your lease). No matter if you want to downsize or upgrade your vehicle – leasing is often the best choice.
No Impact on Trade-In
What will your new vehicle be worth in a few years? It’s certainly hard to predict the future. Thankfully, leasing helps eliminate and protect you against this uncertainty. After your lease reaches its end, you can simply return the vehicle and select your next lease without worrying about the vehicle’s future value. That will be the bank’s problem.
Buying or Leasing – Frequently Asked Questions
When is the best time to lease a vehicle?
Looking for a great deal on a leased vehicle? We suggest waiting until just after a new model year is introduced since these vehicles will usually have the highest residual value during this time period. This helps shield you from high depreciation costs. Consult your finance professional for additional info on available specials and incentives to help boost your savings.
I’ve saved up a sizable sum of money for a down payment. Should I buy or lease?
A large down payment can go a long way towards keeping your monthly payments affordable and helps you pay off your vehicle more quickly. In fact, if the down payment is large enough, you can usually lower your monthly payment down to a similar level as you would pay on a lease.
If you prefer the latest technology in your vehicle, is it better to buy or lease?
As we mentioned above, leasing allows you to enjoy the most flexibility as far as your vehicle needs are concerned. If you’re an individual who craves the most current tech features, styling cues, or safety amenities – leasing is the best route to go. Since you’ll only be driving your vehicle for a few years, you’ll always have access to the latest and greatest features.
My commute to work is quite long. Does it make more sense to buy or lease?
Lease contracts usually have predetermined mileage restrictions. While these can be increased or decreased based on your driving needs, a lengthy commute means that you might hit a mileage penalty. You can avoid mileage restrictions and drive as much as you’d like when you purchase the vehicle.
Can you buy the vehicle at the end of the lease contract?
Not ready to part ways with your leased vehicle? That’s entirely understandable! Most lease contracts contain a price at which you can purchase your leased vehicle following the conclusion of the lease agreement.