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Getting into a new vehicle is exciting, interesting and fun. However, when it comes to making a choice as to whether or not you should buy or lease a car, that’s when confusion can come in. Ultimately, the decision is up to you whether or not you buy or lease a car. However, we at Patrick Dealer Group do things a little differently. In our latest blog we outline the major differences between leasing and buying a car so that you can stay well informed when making your next purchase with us.

 

Leasing

In essence, leasing a car is much like renting it. You don’t pay the full purchase price of the car, instead, you pay for depreciation that is expected to occur during the term of your lease. Typically, most auto leases are closed-end leases which means that the residual value at the end of the lease is locked in before you even drive off the lot. With a lease you are typically going to have lower monthly payments than you would when buying a car, and you’re always going to be getting into a car that has the latest technology as leases typically only tend to last a few years at most.

Trading in is also made easier with a lease because at the end of a vehicle lease you can just return it to the dealership where you got it and that’s pretty much the entire process. You don’t have to worry about haggling over the value of your car because the car’s residual value is set at the beginning of the lease.

Ultimately, you don’t own a car that you are leasing. This is because the leasing company hold its title. You will never have ownership interest in the vehicle because, as mentioned before, you’re basically renting it. Because you’re renting the car, the leasing company can place limits on how you use and customize the car. This includes things such as mileage limits and customization limits so the car never truly feels like your own.

 

Buying

The tried and true method of buying a car is still one of the most popular ways to get into something new. You own the car at the end of your loan and no longer have to make monthly payments on it. This means you can drive and alter the car however you see fit. You also have the ability to gain equity as you pay off your loan. Typically, financing a car is also easier and less complicated than leasing a car.

Keep in mind that if you do choose to buy a car, your monthly payment is going to be higher than it would be with a lease and you are going to have to pay interest on the entire cost of the car as well. This also means that your car’s future value is unknown.

 

What to do?

Leasing allows you to get more car for less money, since you only pay for the value of the vehicle that you drive instead of paying for the entire value. On the other hand, buying gives you the freedom of complete ownership and the ability to pay off the vehicle and build up credit.

No matter your choice, our sales team at Patrick Dealer Group can help you. Feel free to check out our inventory to help make your decision a little bit easier.

Categories: Buying, Leasing