Buying vs. Leasing

BUYING VS. LEASING

When deciding whether to buy or lease a car, the options can be confusing. We believe in the important of making an informed decision when purchasing or leasing a vehicle. When you buy a vehicle, you pay for the entire cost of the it. When you lease a vehicle, you pay for only a portion of its cost, which is the value you use during the time you are driving it.

BUYING

Who Owns It

You own the car. You can either pay in cash, or finance it and make monthly payments. If you do finance, keep in mind you have to meet the obligations from the lendor, such as a specific down payment and monthly payment amount. Otherwise, your car can become repossessed.

Upfront Costs

You will likely need to provide a down payment when financing. You can trade-in another vehicle you own and use equity from it towards a down payment. The amount of the down payment is usually based on the lender's requirements and your credit score.

Future Value

Your vehicle will be worth whatever you can sell it for. A lot of the value will depend on how well you maintain it, so it is very important to schedule regular maintenance and keep your vehicle in top shape.

End of Payments

Once you've paid off what you owe on your contract, that's it. Your vehicle is 100% yours. The lending institution will send you a Lien Release as proof that the vehicle is completely paid off and belongs to you.

LEASING

Who Owns It

You do not own the car when you lease. You are paying to use the vehicle, but the finance establishment you leased it through is the actual owner. The advantage is that you get to pay less per month to lease rather than buying the car and paying more per month.

Upfront Costs

Leases often do not require any type of a down payment. All you usually have to pay is the first month's payment, a security deposit, the acquisition fee, and other fees and taxes. You can lower your monthly payments by offering to pay more upfront, just like when you purchase a vehicle.

Future Value

Since most leases don't end up with you owning the vehicle, you don't end up selling it. That's the financial establishment's job. However, there are usually mileage limits and wear and tear guidelines that, if exceeded, could cost you an extra fee when you turn your vehicle back in.

End of Payments

Most leased vehicles are returned at the end of the lease term. But some like to purchase it during the lease or at the end. Others trade it in before the lease is over. Feel free to ask us about your options before signing any paperwork and we'll make sure you have your lease set up the way you want it.

What Are The Best Cars To Lease?

The best cars to lease are those with the best book value after the term of the lease. Since they depreciate less, you pay less. Review the lease ratings to see which cars retain their value.