Lease vs. Buying

Figure Out if You're Ready to Lease a Car or Buy

  When you’re thinking about buying a car, you’re considering more than just what model to purchase. Depending on where you are in life, you might be wondering if you’re at the place where it is wiser to lease or buy. Anthony Buick GMC acknowledges the value of your decision to invest in a GM vehicle, and they’re available 24/7 to guide you through the pros and cons of both. The truth is, the decision to lease as opposed to buying is a common dilemma among consumers in today’s market, because it truly revolves around each driver’s personal financial standing. If you compare the two, one is not any better than the other, which is why Anthony Buick GMC in Gurnee, Illinois is here to help you navigate you to your final decision.

Leasing is Not the Same as Renting

There is a huge difference between leases and purchase loans. Leasing finances the operation of a car whereas purchasing with a loan finances the purchase of a vehicle. Both have advantages as well as deficiencies, but again, it all depends on everyone’s lifestyle. The consumer must contemplate both financial and priorities, because when you lease a vehicle, you will essentially have a new car every two or three years with no major repair risks. If you’re planning for the long haul, you need to decide whether long term cost savings are more important to you than lower monthly payments. Having ownership of your vehicle might be of greater value to you than low up-front costs and no down payment. The same goes for if you would rather pay off your vehicle and live debt-free for a certain period of time.  

What it Means to Buy

Say you have opted to buy a vehicle. This means you would pay for the entire cost of the vehicle no matter how many miles you get out of it or how long you decide to own it. Your monthly payments will be higher compared to leasing, because you would make a down payment, pay sales taxes in cash or include them in your loan, and finally, pay an interest rate predetermined by your loan company based on your credit score. The first payment is due one month after you sign your contract. Later on, in your ownership of the car, you can sell or trade it for its depreciated resale or trade value.  

The Pros and Cons of Leasing

The reason many drivers associate leasing with renting is because when you lease a car, you are only required to pay a portion of that vehicle’s total cost. This is the part you use up during your time driving it. However, leasing is a form of financing, which means you have the option of not making a down payment and instead paying sales tax only on monthly payments. When you lease, you also pay a financial rate not unlike the interest on a loan. You might be required to pay fees and possibly a security deposit you do not initially pay when you buy. The first payment is made at the time the contract is signed for the upcoming month. Upon the lease’s end, you have the option to either return the car or purchase it for its depreciated resale value. If you do this, you may be charged a lease-end disposition fee. Those are the basics behind the lease vs. buy debate. It is a lot to digest, but no matter where you are in your life, Anthony Buick GMC is available for all your consultation needs whether you want to lease a Buick or a GMC.