Buying vs. leasing - which is better? If you're looking for an answer to that question, we unfortunately must say that there isn't one right answer for everyone. Below, we'll go over the major benefits and drawbacks of both so that you can decide for yourself whether buying or leasing is the best option for you.
What is leasing?
Leasing a vehicle is the use of a car for a fixed amount of time at an agreed upon amount of money for the lease. The down payment and monthly cost for leasing a car will be lower than when buying the same car -but when you return the vehicle, you'll need to get a new one. This means leasing is cheaper in the short-term and more expensive in the long-term. But if you like getting a new car every three years and enjoy the comfort of always being under warranty, you might just consider it a minor setback.
The main drawback is that because you don't truly own the vehicle, you can't customize it, drive it as much as you want, or sell it when you want a new one. A leased car will have a mileage limit, usually around 12,000 miles a year. Going over it or getting too many scratches and dents will cost you extra at the end of the lease period, as will even minor things like losing the keys.
Buying a Car
Buying a car will be more expensive outright but less so over time. Once it is paid off, the car is truly yours and you may do with it as you please. Drive it across the country, customize it, sell it - the choice is yours. It's also really nice not to have to worry about monthly payments.
On the downside, the car's value will decrease over time. It may lose its shine or appeal. Warranties will expire. Repair costs may become increasingly expensive as even the most durable parts finally begin to deteriorate. However, these are often directly related to the love you pour into your car. If you take great care of it, it'll last a lot longer than a regular lease period without ever needing major repairs.
Overall, we can boil it down this way: if you want to own a car for a long time and to do anything you want with it, buy it. If you see the car as a short-term purchase that you might want to replace three years from now, lease it. If you're still unsure, talk to one of our representatives at Geoff Penske Buick GMC!