Leasing Vs Buying

What Do You Plan to Do with Your Vehicle?

Before we get into the basics of leasing vs. buying, we always ask our customers what they intend to use their new vehicle for. The answer to this question can help point you in the right financial direction. Let’s discuss some scenarios for when it’s best to buy vs. lease. 

When to Buy

If you plan to use your new ride as a road-trip companion, you may want to consider buying the vehicle. Most leases have a mileage restriction that you won’t want to exceed; with that being said, buying the vehicle would save you any additional overage fees you may have to pay at the end of a lease. 

If you want to fully deck out your ride with a new paint job, a pair of fuzzy dice on the mirror, or maybe a few racing stripes, you’ll most likely want to buy the vehicle. You’re free to customize a vehicle that you own; the same does not go for leased vehicles. 

When to Lease

Are you planning to move to a crowded city? If so, leasing your next vehicle may be your best financial move. Moving to the city may put you within walking distance from work or may open up public transportation options that may generally be less than a loan payback. Because of this, a lease may suit your needs best. 

If you don’t drive often, a lease may be your best option as well. Due to a lease's mileage restrictions, if you only use this car for special occasions or weekly grocery trips, a lease may work out best for you. 

The Benefits of Buying

Now that we’ve discussed when to buy and when to lease, let’s talk about the benefits of buying a vehicle. For starters, purchasing a car gives you full ownership of the vehicle. When you own your vehicle, you are free to customize it as you please. That’s right—you can add any window tint or interior decorations you want. 

Not only can you build equity in this vehicle over the course of its life, but you can also take it through your life, no matter where you go. With no mileage restrictions, you can hop from beach to beach down the California coast.

The Benefits of Leasing

If you prefer having a varied driving experience, leasing a vehicle is a great option for you. Because typical lease terms last between two to three years, you’ll be able to experience many vehicles, whereas you’re locked into one vehicle when you purchase. 

You’re also able to experience higher technologies and trim levels with a lease. At the end of your lease term, you can easily swap out your current lease for a higher trim level. Also, with a lease, you can expect to pay potentially lower monthly payments as well.