Buying vs. Leasing

When you purchase a vehicle, you gain ownership of that vehicle. This means that you don’t have to follow any agreed-upon mileage restrictions or keep up with service appointments to avoid any additional fees at the end of a contract. Do regular vehicle service on your terms and keep it as long as you like after you’ve paid off the cost of financing. The downside to this is that, over time, vehicles often lose their value. So, if you often turn your vehicle back into the dealership a few years after purchase to put the value towards your next car, you won’t be getting your money’s worth.

Leasing can be a great financial option for drivers who don’t keep their vehicles for the long-term and prefer to have the newest features. Instead of worrying about paying the full cost of their vehicle over time, drivers of leased cars only have to cover the projected depreciation of the vehicle’s value. So, for example, if a $20,000 car is estimated to only cost $13,000 after a period of three years, lessees only have to pay $7,000 towards their leased vehicle. On the other hand, leasing a car still means drivers have to follow the guidelines as agreed upon in the contract, and at the end of the lease term they have to return their vehicle.