Leasing vs Buying

Getting a new vehicle is a big commitment, but choosing the right vehicle for you is the easy part. Deciding how to pay for your vehicle can have significant advantages and disadvantages, so it’s a much more difficult choice. Leasing and buying each have their pros and cons, so choosing between them comes down to your needs and expectations.

We want the best for our local customers in Geneva, Canandaigua and Rochester, which is why the team at Friendly Ford put together this article on leasing vs. buying. Read more about these two financial options here and decide which is appropriate for you.

Leasing a Car

Leasing a car has several advantages that make it an appealing option for many people. The payments are typically lower, since you’re only “renting” a portion of the vehicle’s life, and can offer savings of up to 60% of the cost of an auto loan. You also have the benefit of simply returning the car when the lease is up, meaning you don’t have to worry about the value of your trade-in or resale value and losing money from depreciation. A lease agreement also includes a warranty, which helps you cover the costs of any mechanical problems the vehicle may have while you’re leasing it.

One of the most appealing aspects of a lease for many people is the short-term commitment, however. If you’re the type of person who enjoys driving the newest models and trying out a bunch of different vehicle types, leasing is perfect for you. You’d lose a significant amount of money trying to do that with auto loans, but leasing a car guarantees you’re never stuck with the same vehicle.

Leasing has a few downsides, though. You typically need to have a stable source of income and good credit to obtain a lease, since you’re never without a monthly car payment. You also need to properly maintain the leased car according to the maintenance schedule, as well as stay under the mileage in your contract, or you could incur significant penalties.

Buying a Car

Many people choose to buy a car so that they have full control and ownership of it. Unlike leasing, buying allows you to sell, trade or modify the car as you wish, without any risk of penalties, and there’s no penalty for going over the mileage.

Buying also allows you to build up equity in the car, which helps when it comes time to sell or trade. You’ll be driving your car for many years as well, so you’re spreading out the cost of the car and unlikely to lose any money on the investment.

Unfortunately, there are a few downsides to buying. Your monthly payments are typically higher than a lease, and you’re responsible for any repairs or services that aren’t covered by the warranty. Over time, your car will become more expensive to maintain and repair. When you decide to move on to a different car, you’re the only one responsible for the resale or trade-in value, which means you could lose money.

Visit the Finance Center at Friendly Ford

In leasing vs. buying, both have their benefits, but it ultimately comes down to you. If you’re still unsure of which option is right for you, call or visit Friendly Ford and meet with a finance specialist to explore your financing options. We have plenty of experience helping local customers in Geneva, Canandaigua and Rochester get great deals on their new or used cars, so stop by our dealership to see how we can help you!