Should I Buy or Lease My Next Car?

When it comes to buying vs leasing your new car the options can be confusing. To help you make an informed decision we have provided the information below, we hope you find it informative and useful.

Buying

(Commonly referred to as financing)

Who Owns It

Whether you pay for the car with cash, or finance it and make monthly payments, either way it's yours. Of course, if you're financing it you'll have to meet the obligations the financial institution requires, like a certain down payment amount and timely monthly payments.

Up-front Costs

If you're financing it, you'll probably need to come up with a down payment. You can also trade-in another vehicle and use any equity towards your down payment. The amount of the down payment is usually based on the finance companies requirements and your credit score.

Future Value

Your vehicle will be worth what you can sell it for in the future, also known as residual value but that depends on how well you maintain it. (Be smart and protect your investment with regular scheduled maintenance by a factory-authorized facility!)

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 probably send you a "Green Slip" as proof that the vehicle is completely paid off and all yours.

Leasing

Who Owns It

You do not own the car when you lease. You're paying for the use of the vehicle, but the finance institution that you leased it through actually owns it. This is usually why you pay less per month in a lease than if you were to buy the car. .

Up-front Costs

Leases often do not require any type of a down payment. All you usually have to pay is the first month's payment, freight & pdi and taxes. But, as with a purchase, if you want to lower your monthly payments you can always pay more upfront.

Future Value

In most leases you don't end up owning it so you don't end up selling it. That's the financial institution's job. Although you may have mileage limits and wear and tear guidelines that, if you exceed them, could cost you extra money when you turn your vehicle back in.

End of Payments

Most people return the vehicle at the end of the lease term. But some like to purchase it during their lease or at the end. Others like to trade it in before their lease is over. Just ask us about these different options before signing any paperwork and we'll make sure you have your lease set up the way you want it.

If you have any questions about leasing or financing for your next new or pre-owned vehicle, please fill out the form below and we will be happy to answer any questions you may have. If you would like to go ahead and get pre-approved for you next vehicle purchase, please fill out this credit application.