Print

Lease vs Buy

What is the difference between leasing a vehicle and buying a vehicle?

When you lease, you pay only a portion of a vehicle's cost, which is the part that you "use up" during the time you're driving it. Leasing is not the same as renting. You have the option of not making a down payment, you pay sales tax only on your monthly payments (in most states), and you pay a financial rate, called money factor, that is similar to the interest on a loan. You may also be required to pay fees and possibly a security deposit that you don't pay when you buy. You make your first payment at the time you sign your contract for the month ahead. At lease-end, you may either return the vehicle, or purchase it for its depreciated resale value.

When you buy, you pay for the entire cost of a vehicle, regardless of how many miles you drive it. You typically make a down payment, pay sales taxes in cash or roll them into your loan, and pay an interest rate determined by your loan company, based on your credit history. You make your first payment a month after you sign your contract. Later, you may decide to sell or trade the vehicle for its depreciated resale value.


So, which is better, lease or buy?

It depends on what's most important to you. Vehicle lease-versus-buy decisions must be made with your own lifestyle and priorities in mind. What's right for one person can be totally wrong for another.
LEASE - If you enjoy driving a new vehicle every two or three years, want lower monthly payments, like having a vehicle that has the latest safety features and is always under warranty, don't like trading and selling used vehicles, don't care about building ownership equity, have a stable predictable lifestyle, drive an average number of miles, properly maintain your vehicles, are willing to pay more over the long haul to get these benefits, and understand how leasing works, then you should LEASE.

BUY - If you don't mind higher monthly payments, prefer to build up some trade-in or resale value (equity), like the idea of having ownership of your vehicle, prefer paying off your loan and being payment-free for a while, don't mind the unexpected cost of repairs after warranty has expired, drive more than average miles, prefer to drive your vehicles for years to spread out the cost, like to customize your vehicles, expect lifestyle changes in the near future, and don't like the risk of possible lease-end charges, then you should BUY.

Hours

  • Monday: 8:00am - 7:00pm
  • Tuesday: 8:00am - 6:00pm
  • Wednesday: 8:00am - 6:00pm
  • Thursday: 8:00am - 7:00pm
  • Friday: 8:00am - 6:00pm
  • Saturday: 8:00am - 4:00pm
  • Sunday: Closed
Close