If you prefer to drive newer, safer, more reliable cars, trucks, or SUVs, but not make a big down payment every few years, and also do not travel an enormous amount every year, then a new car lease may be right for you. Leasing is better for people who prefer to escape the hassle of selling and buying each time they want to drive a new vehicle.
Contrarily, if you like long term relationships with a higher sense of ownership and commitment, then buying could be what’s best for you. Car-buying is typically best for shoppers who will not mind driving the same car for over five years or even until it’s no longer fit for the freeway.
Knowing the pros, cons, and overall benefits of buying vs leasing a vehicle is important. Be sure to examine factors like potential savings, vehicle ownership, monthly payments, and repair costs when considering the best new car, truck or SUV financing type for you.
When considering vehicle financing, new car or truck ownership absolutely comes along with many well-known advantages, most associated with entire ownership of the car or truck. You may not realize, but, there are also a few great advantages to leasing, as well. It’s important to consider all financial aspects including buyout payments, down payment, monthly payments, term length, interest rate, depreciation, and maintenance & repair costs, before making a decision. A precise audit of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the optimal choice between leasing and buying a new car.
Car lease payments are often less expensive when compared to car financing and loan payments as the normal lease layout is basically renting with the option to buy out at the end of your lease term. Consider when leasing that you will need a nice credit score, and will be required to carry comprehensive and collision insurance, although the same can be said for the best rate auto loans. Though it may add to your monthly payments, it’s also best to get a model with the features you want or need, as personal satisfaction is often priceless.
Auto leases often include regular vehicle maintenance & repair. It is important to keep this in mind when calculating monthly costs of ownership vs leasing. Regardless of which make and model you select, mechanic bills are an unpredictable cost that can rapidly add up. And for those of us who aren’t certified mechanics with a full toolset and hydraulic jack in the garage, leasing is likely the best option for peace of mind.
Generally speaking, a new car or truck lease saves money in the short term with lower monthly payments, while buying earns you a long term investment, meaning outright ownership of the value of the car, truck, or SUV at the time it is traded, sold, or paid-off. For best savings on a lease, avoid lease return fees for going over mileage, terminating the vehicle lease early, or putting on excessive wear and tear. For your best investment on a purchased/financed vehicle, you can pay it off in a shorter term and also avoid excessive wear and mileage.
Lease | Buy | |
New Vehicles | Available | Available |
Pre-Owned Vehicles | Not Available | Available |
Vehicle Customization | Not Available | Available |
Poor Credit Financing | Not Available | Available |
APR % | Credit-Based | Credit-Based |
Ownership | No Ownership | Pride of Ownership |
Down Payment | Smaller Down Payment | Larger Down Payment |
Monthly Payment | Smaller Monthly Payments | Larger Monthly Payments |
Savings/Investment | Short Term Savings | Long Term Investment |
Finance Term | Approx. 2-4 Years | Approx. 3-6 Years |
Maintenance & Repair Costs | Typically Included | Not Included |
Lexus of Santa Fe knows that choosing the right Lexus car and financing option is never easy. Our team of experienced Lexus lease and finance specialist are on hand to help you make the right choice. Visit us online, by phone, or in-person at our dealership location in Santa Fe, NM. We look forward to serving you.
575-489-2400
Call Now6824 Cerrillos Rd • Santa Fe, NM 87507
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