Leasing vs. Buying a Vehicle
When deciding whether to lease or buy your next vehicle, there is plenty to consider. At Cole Chrysler Jeep Dodge Ram, we will walk you through the steps to make the right decision based on your specific needs. Below is a list of pro and cons for buying and leasing to help you make the right choice!
- Lower Monthly payments with minimal downpayment
- Due to the nature of a lease, you can get a nicer vehicle than if you were to buy with the same monthly budget
- Vehicles tend to be new and within the factory warranty so there is a reduced maintenance cost
- Every 2 to 3 years, you can return it for a new car, depending on your lease term.
- Less hassle when trading your car back in at lease-end
- Reduced sales tax overall.
- When your lease term ends, you have to give the car back, although there is always the option to buy.
- Leases on average offer 10-12,000 miles per year. Depending on your driving needs, you may run out of miles before your lease is over, exposing you to overage charges.
- Leasing generally costs more over time because you will need to sign a new lease or purchase a vehicle at lease end.
- Wear and tear charges are tallied at the end of the lease. If you hit curbs, have scratches or stains, you could be charged.
- There is a fee for early lease termination should you need to back out of your lease for any reason.
- The main reason people buy over lease is because you will own your vehicle with no payments after you pay it off.
- The vehicle is yours to do with what you will! Modify it, add aftermarket parts, and drive however you like.
- You can trade in or sell the vehicle whenever you please.
- Drive as many miles per year without overage charges!
- There is more cost upfront when you buy.
- Finance payments are higher than lease payments.
- Outside of your warranty, all maintenance is at the owner's expense
- Depending on how you care for your vehicle, you may have trouble trading in or selling it.
- Vehicles depreciate in value over time.