Buying vs Leasing

Buying vs Leasing: The Similarities

Before we can help you choose between buying vs. leasing, let’s first look at the similarities between these two financial options.

For starters, both provide you with a custom payment plan that aligns with your financial requirements. When you finance with our team of experts, they’ll help you pinpoint your unique needs by asking a series of questions, such as:

• How long do you want to finance?
• Are you looking to potentially lower monthly payments by trading in a car?
• How much are you comfortable spending each month on payments?
• On average, how many miles do you drive a year?

If you’re unsure how to answer these questions, our online tools are there to provide assistance. From the comfort of your own home, you can receive an Equifax credit score, obtain a trade-in amount for your vehicle, and view how various components could alter your monthly payment.

Regardless of which financial option you choose, these tools and resources are here to help.

Buying vs Leasing: The Differences

Whether you choose to buy or lease, you have access to various resources and a team that will help you build a payment plan. Let’s now look at the differences between these options.

There are a few categories that provide clear differences between buying vs. leasing, such as:

• Estimated monthly payments
• Driving restrictions
• Warranty coverage
• Customization

Let’s take a deeper dive into each category to help you decide which is best!

I Want to Pay as Little Per Month as Possible: Which Should I Choose?

If you’re looking for low monthly payments, leasing may be the better option. Many drivers experience reduced monthly payments when they choose to lease compared to buying, and you could be one of these drivers.

That’s because, when you lease, you only pay the depreciation value of the vehicle over the course of the lease instead of the full cost like you would if you bought. Since the depreciation value is often times lower than the total value, this could result in lower monthly payment.

I Drive a Lot: Should I Buy or Lease?

If you spend a lot of time on the road, buying would likely be the better option. That’s because leases typically come with mileage restrictions, typically anywhere from 10,000 to 12,000 miles per year. If this mileage restriction is exceeded, you may have to pay a fee per extra mile.

If you love spontaneous road trips or travel for business, buying may be the better option since there are no annual restrictions.

I Want My Vehicle to Remain Under Warranty: Which Option is Better?

Having a vehicle under warranty provides peace of mind if the unexpected occurs. If you want your vehicle to remain under warranty coverage, leasing is likely the better option. Leases typically last anywhere from two to five years, which is about the average length of warranty coverage.

Extended warranty coverage is available on bought cars, but typically these must be purchased while it’s likely a leased car will remain under the complimentary warranty throughout the time you drive the car.

I Want to Customize My Car: Which Choice is Better?

If you want to add personal touches to your vehicle and explore factory accessories, buying would likely be the better option. That’s because you own the vehicle and can do whatever you want to it whenever.

A leased vehicle must be returned to the dealership in the pre-agreed condition when you sign the lease, so customization may not be possible.