Should I Buy or Lease a Car?

You can have a new car in your garage every two years if you want with a lease. Or, you can finance the purchase of a car, so you can resell it or trade it in later. Either way, you have two main options available to you when you buy or lease a vehicle. You can get a new or later-model car by leasing or buying. It depends on what level of control you want with your vehicle and how long you want to drive it.

If it’s been some time since you’ve looked for a car around Naples or Bonita Springs, it’s perfectly understandable if you don’t recall the differences between leasing vs. buying a car. At Group 1 Chevrolet Estero Bay, we showcase the different aspects of both options.

We think you’ll benefit from knowing the differences between leasing and buying. Then, feel free to look over our new inventory. After that, contact us or call (239) 908-2600 to schedule a test drive.

The Benefits of Leasing

So, what is leasing a new vehicle?When Fort Myers drivers choose to lease, they essentially rent a vehicle for up to two years. Monthly payments will be lowered and down payments are generally smaller compared to buying. They also won’t have to pay as much sales tax. Upfront costs are less when you sign a lease agreement.

Other benefits of leasing vs. buying include flexibility. When your lease is up, you can renew it, swap it out for a brand-new vehicle, and the lease agreement, or finance the remaining value of your lease to own the vehicle outright. You could get to drive a brand-new vehicle every two years with a lease.

The Benefits of Financing

Should I buy or lease a car? To answer that question, we’ll talk about financing your purchase. When you choose to finance, you get a loan on the full value of the vehicle with the intention of owning it outright after you pay the loan. If you sell the vehicle at that point, you get to keep the entire proceeds of the sale. The full value of a vehicle will be more than the depreciation over a temporary lease period. You’ll have a larger down payment, pay more sales tax, and make bigger monthly payments, making the upfront costs higher for a lease.

But you have more control over how you use the vehicle compared to a lease. You can sell the car at any time or trade it in. If you do that, you can recoup thousands of dollars you’ve invested into the principal of your loan. Financing is almost always the most cost-effective strategy over the long term, but it requires bigger costs upfront and a greater commitment month by month due to higher monthly payments compared to leasing. If you buy a used vehicle, your monthly payments might be less than a lease. But your warranty might be less cost-effective if something on the vehicle breaks down. You also don’t have as much control over the previous owner.

Leasing vs. Buying: Mileage & Restrictions

• When financing with the intent to pursue full ownership, you will not have to worry about mileage limits or restrictions. You can drive the vehicle as many miles a year as you want. You also have a full warranty when buying a new vehicle.
• When leasing a vehicle, you’ll have to stay within certain strict boundaries or pay a fee at the end of your lease term. You might have to keep the mileage under 10,000 a year. That’s because the dealership might lease the car out again or sell it as a pre-owned vehicle. But you can turn in the vehicle at the end of the lease and get a new one afterward.

Leasing vs. Buying: Total Ownership and Customization

• When you buy a vehicle (or finance its full cost), you can add whatever accessories you want. You can also modify the vehicle with custom parts or performance upgrades if you choose, although doing so may void your warranty.
• When you lease, you’ll need to keep the vehicle in as close to factory condition as possible. That’s because the dealership still owns the vehicle, and they’ll need to resell it once the lease term ends.

Explore Leasing vs. Buying at Group 1 Chevrolet Estero Bay

Now you know the main differences between leasing and buying a car. If you’re still deciding whether you should buy or lease, call us at (239) 908-2600. Our finance team is happy to talk to you to identify the better option for your budget and lifestyle. Until your test drive, take a moment to explore our new vehicle specials to see how much more money you can save! You might find buying a better option with a used vehicle.