Buy vs. Lease

 

Buy vs. Lease

 

It’s time for a new car. You’ve been seeing some ideas of what you want but aren’t quite sure how you want to finance it. There are benefits to both buying and leasing, but it can be hard to choose. Check out the differences here to see what’s right for you.

 

Buy

 

Ownership: You own the car

 

Up-front costs: Cash price or down payment, taxes, registration and other fees

 

Monthly payments: Loan payments can be higher than lease payments, plus interest and other finance charges

 

Early termination: You can sell or trade your car any time

 

Vehicle return: You have to sell or trade your car if you decide you want a different one

 

Future value: Your car will decrease in cash value over time

 

Mileage: You aren’t limited to the number of miles you can drive

 

Excessive wear & tear: You don’t have to worry about wear and tear (though it’ll depreciate the value)

 

End of term: At the end of the loan terms, you have no further payments

 

Customizing: You can customize or model your car however you want

 

Lease

 

Ownership: You don’t own the vehicle, unless you purchase it at the end of the lease

 

Up-front costs: First month’s payment, refundable security deposit, taxes, registration & other fees

 

Monthly payments: Lease payments lower than loan payments

 

Early termination: If you end lease early, early-termination charges can be as much as keeping the contract

 

Vehicle return: You can return the car at the end of your lease and just pay end-of-lease costs

 

Future value: Its future value doesn’t affect you financially

 

Mileage: Most leases limit the number of miles you drive (usually 12,000 – 15,000 a year)

 

Excessive wear & tear: You’ll be held responsible for excessive wear & tear and charged extra

 

End of term: At lease-end, you’ll have to finance the purchase of the car or lease or buy another

 

Customizing: Anything you add to the car, you’ll have to remove it before you return it

 

Once you have decided whether you would like to buy or lease your next car, visit Griffin Ford Lincoln and check out our full lineup of Ford and Lincoln vehicles.