Leasing vs Buying
Leasing vs Buying
Why Should You Lease a New Car?
If you like to drive newer, safer, more reliable cars or trucks, but not make a sizeable down payment every few years, and also don’t travel an exorbitant amount every year, then a new car lease should be the right choice for you. Leasing is best for people who prefer to escape the annoyance of buying and selling every time they want to get into a new car, truck, or SUV.
Why Should You Buy a New Car?
On the other hand, if you want long term relationships with a larger sense of ownership and commitment, then buying may be what’s better for you. Car-buying is typically best for shoppers who don’t mind driving the same car or truck for more than five years or even until it’s no longer fit for the highway.
Buy vs Lease: Which Is Right for You?
Being aware of the pros, cons, and overall benefits of buying vs leasing a car, truck, or SUV is critical. Be sure to look at vehicle ownership, monthly payments, repair costs, and potential savings when weighing the pros and cons of the best new vehicle financing type for you.
Leasing vs Buying: Ownership
When weighing the value of vehicle financing, new vehicle ownership surely comes with many advantages, most associated with outright ownership of the car or truck. You may not realize, but, there are also some nice benefits of leasing, as well. It’s imperative to consider all financial aspects including buyout payments, down payment, monthly payments, term length, interest rate, depreciation, and maintenance & repair costs, before making a decision. A precise audit of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the best choice between leasing and buying a new car.
Monthly Payments
Car or truck lease payments are often less expensive than car financing and loan payments as the standard lease structure is pretty much renting with the option to buy out near the end of your lease term. Just consider when leasing that you will need a decent credit score, and will be asked to carry comprehensive and collision insurance, although the same can be said for the better rate auto loans. Although it could likely increase monthly payments, it is also better to select a model with the features you need or want, as personal satisfaction is often priceless.
Maintenance & Repair
Auto leasing often includes regular vehicle maintenance & repair. It is important to keep this in mind when projecting monthly costs of leasing vs ownership. No matter what make and model you choose, mechanic bills are an unknown cost that can quickly add up. And for those of us who are not certified auto mechanics with a full toolset and hydraulic jack in the garage, leasing can be the best option for peace of mind.
Savings vs Investment
In general, a new car lease saves money in the short term with lower monthly payments, while buying earns you a long term investment, meaning full ownership of the value of the car at the time it is traded, sold, or paid-off. For best savings on a lease, avoid lease return fees for going over mileage, terminating the vehicle lease early, or putting on excessive wear and tear. For maximizing investment on a purchased/financed vehicle, you can pay it off quickly and also avoid excessive wear and mileage.
| Lease | Buy | |
| Maintenance & Repair Costs | Typically Included | Not Included |
| Down Payment | Smaller Down Payment | Larger Down Payment |
| Monthly Payment | Smaller Monthly Payments | Larger Monthly Payments |
| Ownership | No Ownership | Pride of Ownership |
| APR % | Credit-Based | Credit-Based |
| Finance Term | Approx. 2-4 Years | Approx. 3-6 Years |
| Savings/Investment | Short Term Savings | Long Term Investment |
| Vehicle Customization | Not Available | Available |
| Pre-Owned Vehicles | Not Available | Available |
| Poor Credit Financing | Not Available | Available |
| New Vehicles | Available | Available |
Acura Honda Mazda Subaru Lease and Finance Offers In Houston TX
Team Gillman Auto Group knows that choosing the right Acura Honda Mazda Subaru car and financing option is never easy. Our team of experienced Acura Honda Mazda Subaru lease and finance specialist are on hand to help you make the right choice. Visit us online, by phone, or in-person at our dealership location in Houston, TX. We look forward to serving you.
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