New Car Lease vs Buy
Why Should You Lease A New Car?
If you like to drive newer, safer, more reliable cars, but prefer not make a considerable down payment every few years, and also don’t drive an excessive amount every year, then a new car lease could be better for you. Leasing is designed for people who would prefer to avoid the hassle of selling and buying each time they want to get into a new car or truck in San Antonio TX.
Why Should You Buy A New Car?
Contrarily, if you prefer long-term relationships with a larger sense of commitment and ownership, then buying might be what’s ideal for you. Car-buying is typically best for shoppers who do not mind driving the same car or truck for more than five years or even until it is no longer fit for the road.
Buying vs Leasing – In San Antonio TX
Being aware of the pros, cons, and overall benefits of leasing vs buying a car or truck is important. Be sure to look at potential savings, vehicle ownership, monthly payments, and repair costs when calculating the best new car financing type for you.
Leasing vs Buying: Ownership
When it comes to vehicle financing, new vehicle ownership surely comes along with many advantages, most associated with absolute ownership of the car or truck. You may not be aware, but, there are also some nice advantages to leasing, as well. It’s essential to consider all financial aspects including depreciation, down payment, monthly payments, term length, buyout payments, interest rate, and maintenance & repair costs, before making a decision. A precise inspection of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the perfect choice between leasing and buying a new car, truck, or SUV.
Monthly Payments
Car lease payments are often times less expensive in comparison to car financing and loan payments as the normal lease layout is basically renting with the option to purchase at the final payment of your lease term. Keep in mind when leasing that you will need a good credit score, and will be required to carry collision and comprehensive insurance, although the same can be said for the lowest rate auto loans. Although it can increase your monthly payments, it is also better to get a model with the features you want or need, as personal satisfaction is often priceless.
Maintenance & Repair
Auto leases often include regular vehicle maintenance & repair. It is important to remember this when calculating monthly costs of ownership vs leasing. Regardless of what make and model you select, mechanic bills are an unpredictable cost that can rapidly add up. And for those who are not certified auto mechanics with a hydraulic jack and full toolset in the garage, leasing can be the best option for peace of mind.
Investment vs Savings
In general, a new car lease saves money in the short term with lower monthly payments, while buying earns you a long term investment, meaning full ownership of the value of the car or truck at the time it is traded, sold, or paid-off. For best value on a lease, avoid lease return fees for terminating the vehicle lease early, going over mileage, or putting on excessive wear and tear. For maximum investment on a financed/purchased vehicle, you can pay it off in a shorter term and also avoid excessive wear and mileage.
| Lease | Buy | |
|---|---|---|
| Ownership | No Ownership | Pride of Ownership |
| Down Payment | Smaller Down Payment | Larger Down Payment |
| Monthly Payment | Smaller Monthly Payments | Larger Monthly Payments |
| Maintenance & Repair Costs | Typically Included | Not Included |
| Savings/Investment | Short Term Savings | Long Term Investment |
| Finance Term | Approx. 2-4 Years | Approx. 3-6 Years |
| APR % | Credit-Based | Credit-Based |
| New Vehicles | Available | Available |
| Pre-Owned Vehicles | Not Available | Available |
| Vehicle Customization | Not Available | Available |
| Poor Credit Financing | Not Available | Available |