Leasing vs. Buying: What’s the Best Option for You?

When you’re ready for a new vehicle, it’s time to decide between leasing vs buying. A lease is a long-term rental contract, while buying a car usually involves dealer or bank financing. Review the benefits of each choice to find the best option for your budget and lifestyle.

Leasing vs Buying: What’s the Best Option for You?

Benefits of Buying

Owning the vehicle when the loan ends is a key benefit of buying a car. You can keep driving it without a monthly payment, sell it for cash, or trade it for another model. With each monthly payment, you gain equity in the vehicle, which means you’ve paid down more of the principal loan balance. You can trade in your car or sell it and settle the loan anytime as long as you have enough equity. Conversely, ending a lease early often has financial penalties.

When you lease a vehicle, you can only drive a certain number of miles. Many leases have a limit of 10,000 to 15,000 miles a year. If you exceed the limit, you may owe fees when you end the lease. Most companies also charge fees for wear and tear on the vehicle. Buying may be a better choice if you have a long commute, drive with kids and pets, or tend to take road trips. It also makes more sense if you like to customize your ride with after-market upgrades.

Reasons to Look at Leasing

Leasing lowers your monthly payment compared to financing a vehicle. You’re paying for the depreciation over the lease term, not the full cost of the car. Most leases also have a lower down payment than required for the average car loan. Since you’re renting the vehicle for an extended period, you don’t own it when the lease ends. You also have to abide by the terms of the lease, so be sure to read the contract carefully to ensure you can follow any restrictions.

Leases typically last two to four years, compared to five to seven years for an auto loan. If you like to switch up your driving experience frequently, consider opting for a lease. This approach reduces your maintenance and repair expenses since most vehicles stay under manufacturer warranty for the entire lease term. It also ensures you’ll always have the latest safety and tech features, and you may save money on sales tax too.

Our experienced team can review the numbers for your favorite model so you can make an informed decision before you drive off the lot. We can also help you find the ideal choice from our extensive inventory of high-quality vehicles. Contact Ewald Automotive Group in Delafield, WI today to test drive your top options and talk about finances. 

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