Buying vs. Leasing a Vehicle

One major question comes up for most people when it’s time to get a vehicle. Is it better to buy or lease? Both have their pros and cons, but what most concerns people is normally the overall cost. In general, it makes more financial sense to buy a car rather than lease. Leasing may be cheaper from month to month, but overall, purchasing a vehicle is financially wiser. Though, there are other pros and cons to look at for each.

Pros of Leasing A Vehicle:

  • Lower monthly payments
  • Always have a new vehicle
  • No selling or trade-in later on
  • Tax advantages for business owners
  • Less sales tax

Cons of Leasing A Vehicle:

  • Always have a monthly payment
  • Set number of miles you can drive under contract
  • Consistent and proper maintenance of vehicle
  • Must have GAP insurance
  • Pay more in the long run
  • Incur fees and lease-end charges
  • Termination fees

Pros Of Buying A Vehicle:

  • Have ownership
  • Drive as much as you like
  • Customization
  • Build up value for selling or trade-in
  • Cost can be spread out
  • No risk of lease-end charges

Cons Of Buying A Vehicle:

  • Higher monthly payment
  • Unexpected repair costs
  • Responsible for selling or trade-in
  • Higher down payment

Whichever you decide is best for you, it’s important to make sure to do your research! Your current situation may heavily sway your decision one way or another, but we’ve provided a worksheet to make that choice a little easier.

We’ve created a worksheet to help you in determining what your better option is.  This way you can compare the difference between the cost of buying or leasing your vehicle!

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