How do you know when to buy a car vs lease one? There are so many things to consider, so we decided to make a list of the pros and cons of each option. We hope this helps with your decision!
Leasing a car:
- Pros:
- Lower monthly payment
- You can switch it up with a “new” car every few years
- You’re always protected under warranty
- You’ll drive the car during its best years
- You’re driving a more modern model of vehicle and potentially a better car than you could own outright
- At the end, you don’t have to worry about selling it
- Cons:
- There might be a driving limit on the car and you could potentially pay per mile after you’ve reached that mark
- You won’t be paying money to “own” the car, you’ll be paying money to borrow it, knowing you’ll switch it up or buy it outright at the end
- If you don’t maintain the vehicle in good condition, you’ll have to pay extra wear and tear fees (this can get super expensive!)
- If you need to get out of your lease before it expires, this could result in paying a lot of money in early termination fees and penalties all at once
Buy your own car:
- Pros:
- Ownership of your car
- You can drive as many miles as you want
- You can modify it as you choose (add your own bells and whistles!)
- Once you pay off the car you won’t have to make monthly payments anymore
- You can re-sell it later down the road or keep it as long as you like
- Cons:
- Higher monthly payments than leasing
- Unexpected post-warranty repair costs
- Responsible for trading/selling your car if you want a different one
If and/or when you’re ready to purchase your own vehicle, come see us first! Getting pre-approved can take the pressure off when going to a dealership. Happy shopping!
