Purchase Vs Lease
Choosing the right car for you or a loved one can be a very exciting time in your life, but you may be wondering: Should I buy or lease? You may be surprised at the answer once you do a little research. Here is some information on both leasing and purchasing to help you make an informed decision.
Monthly Payments
When it comes to buying a vehicle, your monthly payments are calculated off the total purchase price. The payment you make over a 6 to 7 year loan is typically more than a lease payment. Depending on your credit and lease program, lease payments are commonly lower than loan payments.
Customization
When you buy a vehicle, you can customize it the way you want – sound systems, lift kits, all the stickers you can imagine. With a leased vehicle however, you typically have to bring the car back the same way you leased it from Day One since you are technically not the owner. The leasing bank is the owner, so they will need to be contacted before making any customizations so that you do not risk voiding the warranty.
Mileage
This is one of the biggest differences between buying and leasing. When buying, you obviously have no limit to the miles you drive. In leasing, however, you will have mileage terms, and if you exceed them you will have to pay over mileage fees. It is a good idea to do some research first on how many miles you think you will be driving per month, and discuss your options with us so you can stay within those terms.
Up front costs
Whether you buy or lease, the up-front costs include a down payment, taxes, registration and other fees. With buying, most customers put 20% down up front to lower the monthly payment although it is not required. But in some cases the bank financing the vehicle may require a down payment.
With Leasing, most customers decide to pay the down payment, taxes and registration fees up front in order to lower the monthly payment, but this is also not mandatory. However some Leasing Banks may require a down payment.
End of Term
After you pay off a vehicle that you bought, you will receive the title and the vehicle is yours. If your vehicle is still in great shape and does not cost a lot in maintenance repairs, you will certainly enjoy owning a car with no more monthly payments. After your lease has ended, you can either turn in the vehicle to the leasing bank, or you can also buy it. Sometimes the manufacturer will encourage you to turn in the vehicle early for a special promotion. Either way there are processes to follow so make sure you are aware of the details. We are happy to walk you through this.
Early termination of loan or lease
When you are buying your car, you can sell it or trade it in at any time for another vehicle, although timing is everything. You can determine the value of your trade online or contact us for a free trade appraisal to see if it makes sense to trade it in at this time. In a lease situation, terminating your lease early usually results in an early-termination fee. Contact us before you make this decision so we can guide you through the process and see what your options are.
Future Value
Most vehicles depreciate over time, so the car you bought three years ago will most likely be less value when you sell it or trade it in. With leasing, the leasing bank is responsible for the depreciated value, not you. But if you decide to buy the leased vehicle, the future value at which you can buy it at is already stated in the lease contract the day you lease.
Wear and Tear
When purchasing a vehicle, any excessive wear and tear will decrease its value when you decide to sell it or trade it in. With Leasing, you can incur Excess Ear and Tear charges, since lease vehicles get inspected at the end of the lease term. Make sure you are aware of the terms, and know that there are options to purchase coverage plans to cover these wear and tear items.
We hope these tips help you with your purchasing decision. Please contact us for more details and questions – we are happy to help!
Sales Hours
| Monday | 8:30AM - 7:00PM |
| Tuesday | 8:30AM - 7:00PM |
| Wednesday | 8:30AM - 7:00PM |
| Thursday | 8:30AM - 7:00PM |
| Friday | 8:30AM - 7:00PM |
| Saturday | 8:30AM - 5:00PM |
| Sunday | Closed |