Trying to decide which option is the best for you? When comparing leasing vs buying (through financing), there are many things to consider. Learn more about each side.

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When comparing leasing vs buying, you need to take into account the pros and cons. Your lifestyle, car preferences, and availability will determine which is the best option for you and your wallet. Whether it be leasing or financing, one of the most common car buying options, our team will get you the best deal.

Your choice to lease or buy is greatly affected by several important factors including your credit score, income, debt to income ratio, money down, co-signer, the value of your trade-in, and more. 

Each person’s situation differs and affects what is available to you in buying or leasing.

Let’s take a look at:

• What is Leasing?
• What is Financing?
• Why lease? The Pros
• Cons to Leasing
• Why Finance or Buy a Car? The Pros
• Cons to Financing
• Leasing vs Buying: Which is Best for You?

What is Leasing?

Leasing isn’t what it use to be. With Matt Blatt Dealerships, leasing or buying a car are transparent processes. You know your payments and everything up, down, and sideways. Not to mention, we offer a 4 day love it or leave it policy. Going to a reputable dealership makes the world of difference when leasing or buying a car. 

Now, what is leasing? By definition, a lease is ‘a contract by which one party conveys land, property, services, etc. to another for a specified time, usually in return for a periodic payment.’

Basically, you are renting the car for a period of time, like renting an apartment or house. At the end of the lease, 2 options are available for you and your car: return the vehicle back to the dealership and get into a new lease, or buy the car for the price on the lease agreement.

How to determine your monthly lease payments? After choosing how long you’ll lease for, your monthly payments are calculated by the difference between the vehicle’s price and its expected value at the end of the lease, plus interest and fees. When thinking about leasing vs buying, a payment estimate calculator may help give you an idea of what your payments could look like.

What is Financing?

Financing has previously been a very popular car buying option. Now, with more transparency and very affordable lease options, fewer people are opting for it.

Financing is ‘providing funding for a person or enterprise.’ So you are buying the car on a loan with monthly payments for a set of period time. After the agreed pay period, your car will be fully paid off.

The loan can be direct lending or dealership financing. Dealerships tend to have very good loan options because of their strong relationships with banks. You and your sales representative will find a loan that fits your situation with an agreed price, period of time to pay, and interest rate.

Pros and Cons comparing Leasing vs Buying

Why Lease? The Pros

• New Car Every Few Years : Lease time periods are typically 24-48 month terms. Therefore, every couple of years, you bring the vehicle back with zero negative equity and get into a brand new vehicle.
• More Car for Less Money : For the same vehicle, monthly lease payments are lower compared to buying payments. You get a nicer vehicle for less money.
• Flexibility : Not only are you not stuck with the car forever, when setting up your contract you are able to shift around your term length, monthly payments, and money down.
• Always Under Warranty : The car will always be under the factory warranty.
• GAP coverage is included : You don’t have to pay for coverage because it’s included with a lease.
• Option to Buy : At the end of your lease period, you have the option to buy the vehicle.
• Building Credit : Every monthly payment is continuously building your credit up.
• Great Deals : Each month, different lease deals are available. Keep an eye out for the right one for you.

Cons of Leasing

• Mileage Restrictions : With a lease, you are allotted a limited amount of miles each year. Usually, the miles are from 10,000 to 20,000 a year.
• Always a Payment : You will always have a monthly payment.
• Driving Caution : The coverage and warranty cover the normal wear and tear. You pay for any extra damages at the end of the lease.

Why Finance or Buy a Car? The Pros

• Paying to Own : You are building equity in the car. The title and car will be yours.
• Don’t Worry About Miles : Being as you are going to own the car, mileage limits do not apply. Drive as much as you want.
• New or Used : You can finance a new OR used car. And with Matt Blatt’s large inventory of quality pre-owned cars, this is a great option to have.
• Lots of Incentives : The manufacturer usually has continuously changing incentive deals available. If you are looking to finance, keeping an eye on monthly incentives to save money.
• Trade-In : Having a trade in can lower your payments and be part of your payments toward owning the car. Review our trade-in calculator.

Cons to Financing

• Warranty : Your warranty will run out and you’ll have to purchase one or go without one and risk a loss.
• Don’t Officially Own : Until the vehicle is paid in full, you don’t officially own the vehicle.
• Higher Payments : The monthly payments usually are higher when financing.

 

Leasing vs Buying: Which Is Best For You?

In conclusion, when comparing leasing vs buying, there are many things to consider. As a result, it comes down to your situation. Each person is in a different position and will have different choices available to them.

The best option is to speak with a sales representative at a reputable and honest car place to get the best lease and car buying deals.

Our team is here if you have any questions!

And we guarantee, Matt Blatt Dealerships will take care of you!

 

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