To Buy or to Lease
What’s the best option for your new vehicle?
Shopping around for new vehicles can be both exciting and daunting. And one of the biggest decisions playing into your final choice may be whether to buy or lease.
Which one is right for you? Here’s a quick guide to help you figure it out:
| Buy | Lease | |||
| Ownership | Owning your vehicle means that once you’ve paid it off, you may be able to go years without a car payment. That money can be saved toward a new vehicle, or put toward other life expenses. | When a lease term is up, most people move on to
another lease. So their monthly payment never really goes away. But it’s a
choice some people make in order to have an updated, current vehicle. | ||
| Limitations | When you own your own car, you can use it as
much as you need or want to. If you put lots of miles on your vehicle, it may
get you a little less money when you resell it, but this may not be a big
concern for you. | Leased vehicles have annual mileage restrictions — so if you have a long work commute, or plan to take long road trips, a lease may result in additional fees once your term is up. | ||
| Up-Front Costs |
| |||
| Moving Up | Once you finish making payments, you own your car.
Which means that any money you get by reselling it, is yours to apply toward
your next vehicle when you’re ready to move on. | At the end of your lease, you can choose to
lease a brand-new car with the latest features and technologies. Or you can
buy-out the existing car with a new financing option. But you won’t have any
equity to keep for yourself. | ||
| Personalization | Buying a car allows you to customize your car in any way you want (though some modifications may void your warranty). | A leased vehicle will typically be turned back in when your term is complete. That means you have to keep it in condition for another person to use it after you — and modifications will need to be removed. |
Want to compare apples to apples? Talk to us about an auto loan today, so you can decide the right direction for your unique needs.