Leasing Vs. Buying

The decision of whether to lease or buy a vehicle is one worth considering if you’re shopping for a new vehicle. Both options carry pros and cons. Ask yourself if you’re looking for a long-term vehicle or would rather have the option to switch out your ride every few years.

When leasing a vehicle, you will likely pay less per month than you would by buying. Think of leasing and buying a vehicle the same way you would think of renting or buying a home. Your personal situation and preferences should be the defining factors in your decision.

Lease Terms

While every dealership will be different, a lease term will have its own unique stipulations. Typically, you will receive a mileage limit for your leased vehicle. You will be required to keep the mileage under a certain number during the term of your lease.  Otherwise, there is a chance that you will be responsible for paying a fee for every mile over your limit. There may be lease-specific contingencies, so make sure you understand what you’re getting into.

Maintaining Your Vehicle

When leasing, it’s important to remember that the vehicle is not actually yours. You are required to return your vehicle in excellent condition to avoid paying a penalty. However, if you own your car, you can endure some scratches or dings that may come up.

Your leased vehicle will typically be under warranty for the duration of the lease, so you shouldn’t have to worry about any pricey repairs.

One con to consider when purchasing is that once your warranty expires, all repair responsibilities are placed solely on you.

How’s Your Financial Situation?

For many lease promotions, you are generally required to come up with a down payment. When buying, it may be easier to use the value of a trade-in vehicle as a down payment, rather than coming up with a certain percentage of the total price in cash.

If your credit is less than perfect, you may have a harder time leasing. Dealers can be more apt to lease their vehicles to people with reputable credit scores. When buying, banks can be more lenient on a purchaser with a lower score and allow for a co-signer.

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