New Car Leasing vs Buying
Why Lease a New Car?
If you prefer to drive newer, safer, more reliable vehicles, but not make a big down payment every 3-4 years, and also do not travel an enormous amount of miles annually, then a new car lease may be the right choice for you. Leasing is better for those who would prefer to escape the annoyance of buying and selling each time they want to drive a new car, truck, or SUV.
Why Should You Buy a New Car?
Contrarily, if you like long term relationships with a higher sense of commitment and ownership, then buying should be what’s better for you. Car-buying is typically best for drivers who will not mind driving the same car for more than five years or even until it is no longer suitable for the freeway.
Buy vs Lease: Which One Is Right for You?
Knowing the pros, cons, and overall benefits of leasing vs buying a car, truck, or SUV is imperative. Be sure to look at vehicle ownership, monthly payments, repair costs, and potential savings when considering the best new car or truck financing type for you.
Buying: Ownership vs Leasing
When weighing the value of vehicle financing, new car or truck ownership surely comes with many well-known advantages, most associated with outright ownership of the car. You may not be aware, but, there are also a few great benefits of leasing, as well. It’s essential to consider all financial aspects including term length, down payment, monthly payments, buyout payments, interest rate, depreciation, and maintenance & repair costs, before making a decision. A careful examination of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the ideal choice between leasing and buying a new car, truck, or SUV.
Vehicle lease payments are often times less expensive than car financing and loan payments as the typical lease format is basically renting with the option to buy out near the final payment of your lease term. Just consider when leasing that you will need a healthy credit score, and will be required to carry comprehensive and collision insurance, though the same can be said for the lowest rate auto loans. Although it might likely add to your monthly payments, it’s also smart to get a model with the features you need or want, as personal satisfaction is often priceless.
Maintenance & Repair
Auto leases often include regular vehicle maintenance & repair. It is important to remember this when projecting monthly costs of ownership vs leasing. Regardless of what make and model you choose, mechanic bills are an unpredictable cost that can quickly add up. And for those of us who are not certified mechanics with a hydraulic jack and full toolset in the garage, leasing can be the best option for peace of mind.
Investment vs Savings
Generally speaking, a new car or truck lease saves money in the short term with lower monthly payments, while buying gets you a long term investment, meaning full ownership of the value of the car or truck at the time it is traded, sold, or paid-off. For best value on a lease, avoid lease return fees for terminating the vehicle lease early, going over mileage, or putting on excessive wear and tear. For maximizing investment on a purchased/financed vehicle, you can pay it off quickly and also avoid excessive wear and mileage.
|Maintenance & Repair Costs||Typically Included||Not Included|
|Down Payment||Smaller Down Payment||Larger Down Payment|
|Monthly Payment||Smaller Monthly Payments||Larger Monthly Payments|
|Ownership||No Ownership||Pride of Ownership|
|Finance Term||Approx. 2-4 Years||Approx. 3-6 Years|
|Savings/Investment||Short Term Savings||Long Term Investment|
|Vehicle Customization||Not Available||Available|
|Pre-Owned Vehicles||Not Available||Available|
|Poor Credit Financing||Not Available||Available|
Buick GMC Lease and Finance Offers In Houston TX
Beck & Masten Buick GMC South knows that choosing the right Buick GMC car and financing option is never easy. Our team of experienced Buick GMC lease and finance specialists are on hand to help you make the right choice. Visit us online, by phone, or in-person at our dealership location in Houston, TX. We look forward to serving you.