When you arrive at a car dealership, one of the first questions you’ll ask yourself is whether you intend to buy or lease your next vehicle. This decision and the reasoning behind it can be unique for each individual stepping onto the lot. Perhaps you always love driving new cars. Then leasing would be a clear choice for you. Maybe you get satisfaction out of seeing your payments fall to nothing. If so, buying a car would eventually lead you to this achievement of owning it outright. We have gathered together a mini comparison of buying vs. leasing to help you choose the best option for you.
- Monthly Payment. Monthly payments on a leased vehicle are typically lower than financing payments. This is because when you purchase a vehicle, your payments include the entire purchase price whereas lease payments are only on the vehicle’s depreciation.
- Frequency of Changing Vehicles. If you are someone who loves that genuine new car smell, you’d probably be a fan of leasing. The average lease lasts 2-3 years, meaning every 24-36 months you’d be driving a new vehicle. If you like changing vehicles that often and driving a new vehicle is a priority for you, leasing is your ideal choice.
- Warranties. When you lease a new vehicle for 36 months or less, all manufacturer warranties will cover the full lease term. Buying a car and financing it for 48 months or more means your warranty will expire before your finance term does. This could have you facing unknown repairs and costs for your vehicle.
- Mileage. After purchasing your vehicle you have the freedom to drive it as many miles as you want. However, lease payments are based on predetermined mileage and most leases only allow you to drive 12,000-15,000 miles per year. Going beyond this mileage limit could have you paying some pretty hefty fees for each mile you exceed. If road trips are your thing, leasing is probably not the best option for you.
- Vehicle Return. At the end of a lease you can return you vehicle and walk away. If you purchased your vehicle you would have to sell it or trade it in when you decide you want a different one.
Still can’t decide which route is best for you? Take our convenient online questionnaire to see what category your habits best fall under. Visit our El Paso dealership for any additional questions you may have. Our team will be happy to help!