Leasing vs Buying a New Car Benefits - Tomball, TX

Leasing vs Buying a car near Houston

IF YOU ARE DECIDING WHETHER TO PAY FOR A NEW CAR OR GET A LEASE, CHECK OUT SOME OF THE MAJOR DIFFERENCES BETWEEN BUYING AND LEASING.

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OWNERSHIP

Buying
You own the vehicle and get to keep it as long as you want it.
Leasing
While you don't own the vehicle while you are leasing, leasing enables you to always have a new car in the driveway. Drivers benefit from having the latest safety technology.

UP-FRONT COSTS

Buying
The up-front costs include the cash price or a down payment, taxes, registration and other fees.
Leasing
Typically includes the first month's payment, a refundable security deposit, a down payment, taxes, registration and other fees.

MONTHLY PAYMENTS

Buying
Loan payments are usually higher than lease payments because you're paying off the entire purchase price of the vehicle, plus interest and other finance charges, taxes, and fees.
Leasing
Lease payments are almost always lower than loan payments. You can get more car for a lower payment!

EARLY TERMINATION

Buying
You can sell or trade in your vehicle at any time. If necessary, money from the sale can be used to pay off any loan balance.
Leasing
If you end the lease early, early-termination charges may be applied.

VEHICLE RETURN

Buying
You can sell or trade-in your car when you decide you want a different one.
Leasing
At the end of your lease you can return the vehicle, pay any end-of-lease costs, and walk away.

FUTURE VALUE

Buying
The vehicle will depreciate but its cash value is yours to use as you like.
Leasing
The future value of the vehicle doesn't affect you financially.

MILEAGE

Buying
You're free to drive as many miles as you want. (But higher mileage lowers the vehicle's trade-in or resale value.)
Leasing
Most leases limit the number of miles you may drive, often 12,000 to 15,000 miles per year. You can always negotiate a higher mileage limit.

MAINTENANCE

Buying
You don't have to worry about wear and tear, but it could lower the vehicle's trade-in or resale value.
Leasing
People normally lease for a term that coincides with the manufacturer's warranty coverage so if something goes wrong, the repairs are covered.

FUTURE VALUE

Buying
At the end of the loan term (typically four to five years), you have no further payments and you have built equity to help pay for your next vehicle.
Leasing
At the end of the lease (typically two to four years), you can finance the purchase of the car or lease or buy another. Many automakers choose to offer subvention cash to customers that choose to purchase their leased vehicle.

CUSTOMIZING

Buying
You can modify or customize the vehicle as you like.
Leasing
Because the lessor wants the vehicle returned in sellable condition, any modifications or custom parts you add will need to be removed before you return the car.