We’ve all been there. Wanting to purchase a new car, but not really knowing whether you REALLY want to buy the car, or just lease it. The decision is a tough one to make, but our Finance Department can help you make the right decision for your lifestyle.
Read through this list of advantages and disadvantages of buying a car and leasing a car from our friends at Edmunds.com, and see which you think is your best option.
Advantages of Car Leasing
- Lower monthly payments
- Lower down payment
- You can drive a better car for less money each month.
- Lower repair costs (With a three-year lease, the factory warranty covers most repairs.)
- You can more easily drive a new car every two or three years.
- No trade-in hassles at the end of the lease
- You pay sales tax only on the portion of the car you finance.
Disadvantages of Car Leasing
- You don’t own the car at the end of the lease.
- Your mileage is limited to a set amount, typically 12,000-15,000 miles a year (excess miles are paid for at the lease termination).
- Lease contracts are confusing.
- Leasing is more expensive in the long run (as opposed to buying and driving until the wheels fall off).
- Wear-and-tear charges can add up (paid at lease termination).
- It’s costly to terminate a lease early if your driving needs change.
Advantages of Car Buying
- Pride of ownership — you can modify your car as you please.
- Car buying is more economical in the long run unless you buy and trade-in regularly.
- No penalty for driving excess mileage
- Increased flexibility — you can easily sell the car whenever you want.
Disadvantages of Car Buying
- Higher down payment is generally required.
- Higher monthly payments
- You’re responsible for maintenance costs once the warranty expires.
- Trade-in or selling hassles when you’re ready to get rid of your car
- More of your ready cash is tied up in a car, which depreciates, rather than an investment that appreciates.