Leasing vs. Buying a Car: Which is the Right Choice?

When you want a new car, you have two basic options for getting one: leasing or buying. But what does each choice involve? And how can you tell which option is right for you?  

Let’s go over the pros and cons of each choice so you understand what you’re getting when you lease a car and when you buy one.  

Pros and Cons of Buying 

When you buy a car, once you pay it off, it’s yours forever. In many ways, that’s great. You pay a certain amount for the vehicle upfront with your down payment, then continue with monthly payments until the loan is done. You can keep it in any condition once you complete the initial purchasing process, and then you can sell or trade it in whenever you want. There are also no mileage limits on how far you can drive it. Essentially, you have complete ownership, and you’re able to treat it as more of an investment. Buying also allows you to shop for used or certified pre-owned vehicles, which can save you a ton of money. 

However, when you buy a car, you must be able to afford routine maintenance and major repairs, including body work after an accident (unless, of course, it’s covered by a top-tier warranty). You also need to be able to keep up with loan payments, and these monthly loan payments are often higher than monthly lease payments because they’re based off the full value of the car at the time of purchase. Additionally, a bought car depreciates over time, so it will only be worth so much when you’re done with it, meaning the investment may not always pay off. 

Pros and Cons of Leasing

In contrast to buying, when you lease a car, it technically still belongs to the dealership—it’s basically the same as the difference between owning a home and renting an apartment. One of the major benefits of this is that you won’t be on the hook for any major repairs, and many lease agreements cover with scheduled maintenance because the car is still under factory warranty. Additionally, lease payments are often lower because you’re only paying for the expected depreciation over a couple years, as opposed to financing the full value of the car. Once the lease is over, you simply bring it back, turn the keys in, and pick another car. 

While this sounds simple enough, the leasing process has some more strings attached to it than the buying process has. For instance, leasing may have more upfront costs than buying does, and those costs can include a refundable security deposit, an acquisition fee, a down payment, taxes, and more. You also have to keep the car in good condition and drive it within certain mileage limits so that the dealership can choose to sell it afterward. Also, you may have to pay extra charges if you choose to return the vehicle before the end of the lease period. 

Which Option is Right for You? 

If you’ve read through the pros and cons of both buying and leasing listed above and you’re still not sure which option fits your financial situation, consider these questions: 

• Which upfront cost system is more financially feasible for you right now: a down payment and taxes for buying, or the multiple upfront costs that come with leasing? 

• Would you rather have lower monthly payments, or invest in eventually owning the car outright? 

• What are your daily driving habits like, and how much wear and tear will you put on a vehicle?  

• How long do you want the vehicle for? 

• Do you prefer to pay less for a brand-new car with all the latest features, or are you okay with buying something slightly older to save money? 

• Would you prefer the pressure of keeping a car in excellent condition, or treating it however you want, but footing the bill for repair costs? 

Once you know your personal answers to these questions, you’re well on your way to choosing between leasing and buying. 

Buy or Lease Your Next Lexus in Fort Pierce, FL 

If you want to discuss the finer points of buying or leasing a Lexus near Port St. Lucie, contact us online or give us a call at (772) 460-0000 to speak with one of our customer service experts. We’ll help you find the right luxury car for your driving habits and a financing plan that suits your needs.