Buying vs. Leasing A Car

“2009 Lexus LS 460 L 001” by Lexus Newsroom

Getting your hands on a new vehicle can be a complicated process. The choices of vehicles and range of purchasing options can be overwhelming, but they don’t have to be. We know it’s important to understand the differences between buying and leasing, so we’ve created this guide to help you know which one is best for you when the time comes.

Advantages of Buying

Buying a car, truck, or sport utility vehicle is usually a driver’s first impulse, and for good reason. There are many perks to buying. First, the terms of buying contracts tend to be far less restrictive than those of a lease. There is no maximum mileage limit, and no fees are set up for mileage. You can sell your vehicle once you have paid it off completely or trade it in for the value you’ve paid into it.

Drivers who love modifying their vehicles to make them ideal muscle cars or off-road vehicles will want to buy because there is no contractual restriction on modification when buying. When you buy, your down payment will cut into the overall cost of the vehicle you’re interested in. Also, the higher the down payment, the lower the monthly payments.

Drivers who buy vehicles have no restrictions in terms of where they can go to trade in or sell their vehicles. Most lease agreements require that if the lease is ended, the vehicle must be returned to the leasing organization rather than sold to another one for the paid value.

When you buy, you can choose between a new or used car, truck, or SUV. It is fairly uncommon for lease vehicles to be used since one of the main draws of leasing involves getting your hands on the newest model year.

Advantages of Leasing

Leasing can be complicated, but if you’re careful, it can bring about some incredible driving experiences with minimal hassle, and Eskridge Lexus can help. One of the most significant advantages related to leasing a vehicle is that you can always drive the newest model with the most current technology. If you’re the kind of driver who wants access to the newest features each year without having to pay ticket value for each vehicle, leasing is probably for you.

If your needs or lifestyle should change, you can easily change the type of vehicle you drive when you lease. Maybe you needed that workhorse truck for a particular job, but now you need something more sporty. Or perhaps you want to take on more outdoor adventures and need the perfect SUV to carry you. Once you turn in your old lease, you can get exactly what you need. On the other hand, maybe you like the vehicle you have but the newest model has an upgrade, like a new infotainment system or turbo engine. When your current lease is up, you can turn it in and get the latest model.

Leasing also grants the advantage of a comprehensive and useful warranty. The mechanics at these facilities are trained specifically to work on the brand of vehicles sold there, so there is no better place to have work done on your leased vehicle.

Your down payment dollars will go further with a lease than when buying, but keep in mind that unless there is a buying clause, you won’t own the leased vehicle when the contract expires. Leasing will cost you less in the long run than taking out an auto loan.

If you aren’t going to buy outright or go in with a large down payment, leasing is probably the way to go. Though insurance and warranty coverage tend to be complete, there is sometimes a need for gap insurance on a leased vehicle in case a total loss occurs, but don’t worry. Most lease agreements will offer gap insurance as a contract feature.

Disadvantages of Buying

One of the primary disadvantages to buying your next car, truck, or sport utility vehicle is related to taxes. They’re far higher when you buy and negligible when you lease, and your monthly payments for a lease are likely to be lower than if you make monthly payments toward purchasing the vehicle. New vehicles depreciate as much as 20% the moment they are driven off of the lot. But when you opt for a lease, you don’t have to worry about depreciation because you can trade the vehicle in for a new leased vehicle later.

Buying used vehicles from a random seller can be a dubious proposition because it’s hard to know what the history or true condition of a used vehicle is, and the inspections needed to find out often cost hundreds of dollars. Then there are the repairs after the diagnostics to consider. In the end, you could end up spending more money on getting a used vehicle up to par than you would have spent on a lease. However, dealerships inspect and repair used vehicles far more carefully, so you can be sure you’re getting a quality car, truck, or SUV.

Disadvantages of Leasing

If you aren’t very careful and attentive with your lease, you could end up racking up a long list of expensive fees, from mileage limit fees to wear and tear fees and alterations in your contract’s term and monthly rate. Some lease rates and terms change automatically after a certain amount of time has passed. Others do the same after a certain mileage threshold is reached. Leases are legal contracts that can be difficult to cancel. Early cancellation can also bring about hefty fees.

Vehicle customization is typically not allowed on leased vehicles since warranties require that they remain unaltered. This ensures that the dealership mechanics know every part that is covered by the warranty and can operate accordingly.

Contact Eskridge Lexus of Oklahoma City When You’re Ready to Buy Or Lease

Now that we’ve explained the basics of buying and leasing your next vehicle, we hope you have a better idea of which path you favor. Weigh your options carefully and don’t be afraid to consult an expert. The professionals at Eskridge Lexus are ready to answer any questions you might have.