When Is Buying A Car Better Than Leasing?

Leasing vs Buying Shopping around for a new vehicle can be a tricky proposition at times. With multitudes of ads, special offerings, interest rate deductions and safety stats on various vehicles, it can seem overwhelming.

One of the most debated topics on car buying is whether to lease or purchase.

A typical lease deal is one that lasts for 3 years with an allowance of 10,000-12,000 miles per year. This option requires much less money down, no long-term financial commitment and a guarantee of a new car after three years.

With owning a vehicle, you are financing the vehicle for the duration of 4-7 years with monthly payments. This option gives you the reassurance that you won’t have to shell out thousands of dollars in three years’ time, you will eventually be car debt-free, and you have the freedom to drive as many miles as you’d like.

However, there are times when purchasing a car is better suited over leasing.

Gaining equity in a vehicle happens when you put a portion of that car loan towards the initial down payment, and this results in an immediate positive equity. It’s also the same as lowering the overall amount of the loan. You have no equity when leasing, no matter what the terms are.

When you pay the loan off over a certain period of time, you will have full ownership of that vehicle, there is no negative equity involved. In owning your vehicle, you have the opportunity to trade-in for a newer vehicle or sell the vehicle outright and make some money.

With buying a vehicle, you have more power to negotiate. There is almost always room for price adjustment when buying a car. You don’t have that flexibility when leasing, the deal is usually just as you see it.

Whether you plan on buying or leasing your next vehicle, choose a reliable dealership that keeps your needs and wants a priority. With George Kell Motors, we can help you decide between buying and leasing with expert assistance.