Lease vs. Buy

Leasing vs. Financing

In the automotive world, the options are endless. Are you looking for a truck, car or SUV? Do you want something luxurious or basic? Do you prefer power or efficiency? Would you rather have leather or cloth seats, red or white exterior, automatic or manual? There are a myriad of choices ranging from the most basic to the most detailed aspects of your vehicles. One choice that many consumers often overlook is the option to Lease vs Buy a vehicle. Both have their perks and deciphering the difference will help make finding the right vehicle that much easier!

  Pros Cons
 Buy • The vehicle is yours to keep for as long as you want it.

• If you want to upgrade to a different vehicle, you can do so at any time. There is no contract or timeline you must abide by.

• You own the vehicle, so you are entitled to all of its equity. That means that although the return on the vehicle may depreciate in time, the cash value is yours.

• The mileage is unlimited- drive it wherever and whenever you please.

• There are no consequences for wear and tear other than a lower trade-in value.

• You can customize the vehicle as much or as little as you'd like.
 • You pay the cost of the entire vehicle, not just a portion.

• After you decide you no longer want your vehicle, it is up to you to trade or sell the vehicle and this can often be an exhausting process.

• Making loan payments to pay for a vehicle is often higher than leasing payments because you're paying off the entire price of the vehicle along with interest and other fees.

• Many factors affect the trade-in value and could potentially make re-selling the vehicle difficult (i.e. high mileage, wear and tear, damages, vehicle age, depreciation, etc.).
 Lease • You get to have the vehicle of your choosing for a short period of time, allowing you to upgrade easily at the end of your lease if you decide you want something different.

• Lease payments are usually lower than loan payments because you are only paying for the vehicle's depreciation over that period of time and a few small fees.

• Returning the vehicle at the end of the lease is easy. You simply pay off any last-minute end-of-lease costs then walk away. Or, you always have the option to buy the vehicle at the end of the lease.

• Because you do not own the vehicle outright, the future value won't affect you financially.
 • If you want to end the lease early, you will be stuck with pricy early-termination charges.

• Because you do not own the vehicle outright, you have no equity in the vehicle. Therefore, you will get no cash value for the vehicle once you are done with it.
• There is often a 12,000 - 15,000 miles per year mileage limit on leased vehicles. If you go over this limit, you could accrue additional charges.

• Extra fees may result if damage is beyond what is considered normal wear and tear when the vehicle is returned.

• At the lease end, you are financially responsible for the purchase or a new vehicle or the start of a new lease.

• Customizing your vehicle is more difficult because any modifications made during the time of the lease will need to be removed before the vehicle is returned.
 
With so many options to choose from, it is easy to get the vehicle that suits all of your needs and this includes choosing the way you pay. If you prefer owning the vehicle outright, then buying is the path for you. However, if making short term payments is more your style, leasing is the best option. To learn more about these financing options, Contact Seelye Auto Group today. Their knowledgeable staff will help you determine whether you should lease or buy. To view some of our New and Used inventory and to take advantage of our many vehicle incentives, check us out online today!

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