Leasing vs. Buying
The decision of whether to lease or purchase your new vehicle is one of the most important choices for car shoppers to make. There are many important differences between the two which can help you make your choice. This guide highlights some of the most notable aspects.
|Monthly Payments||The Lease Value in which your payment is determined is lower than an amount that would be traditionally if financed. Depending on your credit and lease program, Lease payments are commonly lower than Loan payments.||When financing a vehicle, your payments are calculated off total purchase price. Payment value over a 6-7-year loan is typically more than a lease payment.|
|Sales Tax||Typically, drivers who lease a vehicle will only pay sales or use tax on their monthly payments and any capitalized cost reduction. This means less sales tax paid over a longer period. When purchasing a vehicle sales tax is paid on the full purchase price (although the value of your trade in is often excluded from this amount.|
|Ownership||During a lease the dealership maintains ownership of the vehicle. At the end of the lease you can choose to renew your leaser, purchase the vehicle or return it the dealership and pay any associated costs. Purchasing a vehicle means that you are the owner whenever you make your final payment.||After paying the vehicle off you own the vehicle, receive the title and get to keep it for as long as you want.|
|Warranty Coverage||All vehicle warranties cover terms of 36 months or less, which means it's likely that your full lease term will be covered. This helps to ensure fixed costs of driving over that period. If you finance a vehicle your warranty will expire, and your costs of driving will be variable.|
|Trading Vehicles||Drivers who lease have the option to change cars whenever their lease term is up by
simply entering into a new lease. Purchasing a vehicle makes it more difficult to
change vehicles frequently, since you will be paying for the full cost of the
vehicle and description, including any unexpected depreciation (in a lease the risk
of unexpected depreciation is carried by the lessor).
We offer affordable lease options on almost every model. Contact or visit our dealership today for more information on leasing and purchasing.
|Upfront Costs||Up-Front Costs include a down payment, taxes, registration and other fees. Most customers decide to pay these fees upfront to lower payment, but it is not mandatory. In some cases, Leasing Bank may require a down payment to allow you to lease vehicle. Get pre-qualified today for more details.||Up-Front Costs include a down payment, taxes, registration and other fees. Most customers put 20% down upfront to lower payment, but it is not mandatory. In some cases, Financing Bank may require a down payment to allow you to finance vehicle. Get pre-qualified today for more details.|
|Customizing||When you Lease, you have some limitations to customization you can make on vehicle since you are technically not the owner (leasing bank is owner). In modifying certain items on vehicle that could run risk of voiding warranty… it is always best to check with Lessor before making customizations.||Since the vehicle is yours, you can customize it however you would like. (i.e. adding a lift kit to truck, custom sound system, etc...)|
|Mileage||In lease agreements you are limited to mileage you can put on vehicle. Most mileage terms are between 10,000-15,000 mile per year maybe more (check with Dealership for exact mileage terms available). You may have to pay over mileage fees if you exceed contract terms; it is always best to see dealer & discuss options if you think you might come close to exceeding miles within lease contract.||Buying a vehicle means you have no limit of how many miles you may drive.|
|End of Term||At End of Lease although you do not own vehicle, you have options. You can buy out vehicle or turn vehicle in back to leasing bank. Sometime Manufacture will encourage you to turn lease in early and lease again with special promotions. There are Lease Return processes that need to be followed, see dealer for details.||After paying off vehicle loan, you own vehicle. Some customers enjoy owning a vehicle with no payments after loan is paid off. Owners may want to consider cost of ownership on older vehicles vs. payment on a replacement vehicle. (In some cases new vehicle payment can be less than cost of maintenance and repairs of existing vehicle with no monthly payment).|
|Early Termination of Lease||In a situation where you want to terminate your lease early, you may inure an early-termination fee. We encourage you to visit the dealership to discuss the possibility of avoiding these types of fees.||You have the options to sell/trade your vehicle at any time. However, depending on the value of your vehicle and total depreciation, it is best to see dealer to value your trade when considering buying a replacement vehicle.|
|Vehicle Return||At end of lease you have options to review. You can turn in vehicle & walk away. You can purchase your vehicle. In some cases, the dealership may buy vehicle for dealer inventory. (please note: vehicle under goes an inspection to determine if any excess wear and term charges will be incurred, see Lease turn in for more details)||When replacing your vehicle, you choose whom or where you sell/trade your vehicle.|
|Future Value||If you choose at end of lease to turn in vehicle and walk away, leasing bank is responsible for depreciated value. On the flip side, if you decide to purchase vehicle at end of lease, the future value at which you can buy vehicle for is stated in Lease contract the day you lease.||Depending on Market Value, most vehicles depreciate over time.|
|Wear and Tear||It is possible that you incur Excess Wear and Tear charges. Lease vehicle under goes an inspection to determine if there are any excess wear and term charges, see Lease turn in for more details. You also have option to purchase coverage plan to cover excess wear and tear; see dealership for all options.||Excess Wear and Tear will decrease the value of any vehicle when you go to sell or trade in.|