Leasing vs. Buying

Signing Finance Documents for Car

 

Should you buy or lease your next Ford, Chrysler, Dodge, Jeep, Nissan, Ram, Toyota? It’s a question that many customers tend to ask us here at Anderson Auto Group. It’s also quite a quandary for some car shoppers. Luckily, at our dealership, we have the details on both types of auto financing so you can figure out which option better suits your financial needs. Ready to learn more? Read on or contact us anytime! While neither car finance solution is ‘better’ than the other, one will likely be a more fitting choice for you! 

Leasing vs. Buying: Long and Short-Term Costs

  • Leasing gives you lower monthly payments than purchase financing, all else being equal. You’ll also spend less on initial taxes and (a) down payment. However, if you get into a cycle of leasing a new car every few years, your payments won’t change much over the years, but their cumulative cost will likely be higher than the cost of keeping a vehicle for 10-20 years and having a higher payment for the first 3-8 years.
  • Financing gives you a chance to obliterate your monthly payment altogether, and buying used is often more affordable than leasing new, giving you an opportunity to lower your monthly payments another way but still be left with residual value when you trade-in your used car. Plus, you can trade in a financed car. Still, for drivers who value a new car with the latest safety features and styling, there’s no good financial reasoning that can beat the added safety (not to mention peace of mind) of having a leased vehicle that’s always within the new vehicle’s limited warranty coverage window.

The Bottom Line: Looking for lower monthly payments and a lower down payment? Leasing is probably ideal. Looking to eventually pay off your vehicle and have $0 payments in the long-run? If you keep your vehicle for a long enough time and this holds true, then buying is most likely a good choice for you.

Leasing vs. Buying: Mileage & Restrictions

  • Those who finance a vehicle or purchase it outright can drive as many miles as they want, whenever they want.
  • Those who lease their car will need to stay within preset mileage limits and vehicle condition limits or face paying a hefty fine at lease’s end. 

The Bottom Line: Looking for a fuel-efficient, safe, and modern vehicle with which to conquer the daily commute? If you drive around 10,000-15,000 miles a year, then a lease could be a great option for you. Otherwise, if you drive more, you’re better off buying.

Leasing vs. Buying: Total Ownership and Customization

  • When you buy a vehicle (or finance its full cost), customization is well within the realm of possibility.
  • When you lease, on the whole, you’ll want to keep your car in stock/factory condition.

The Bottom Line: To customize your car in any way, buying is the way to go.

Leasing vs. Buying: Freedom, Options, & Processes

  • Financing offers flexibility. When you finance, you have more flexibility to refinance later, or even trade-in your vehicle with payments (or without them, of course) to capitalize on its residual value. 
  • Leasing is easy and convenient. Take care of your car and leasing is a great way to get a new car every few years. That in and of itself is a huge perk, and the major draw of leasing other than lower payment costs and potential tax-write offs for leases used as company cars. 

In Conclusion: If you want a new car every few years and don’t mind making continual car payments, albeit smaller ones than you’re likely to make when buying, leasing is probably perfect for you. It also gives you access to all the latest features, and the vehicle you drive will likely offer covered maintenance and repairs in many cases. If, on the other hand, you want to be able to drive your car unlimited miles, make customizations, or eventually have $0 payments, then buying is likely an ideal solution for your needs. 

Should I Buy or Should I Lease? Find Out More at Anderson Auto Group!

Ready to figure out once and for all if you should buy or lease your next car? First, check out our huge selection of new vehicles for sale. (Because we’re a large auto group with about half a dozen dealerships, we’re less susceptible to inventory shortages such as those caused by supply issues, chip shortages, and more). Then, feel free to visit our online finance center to further explore your options, or call .

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