Buying vs. Leasing
Buying vs. leasing—what’s better? Unfortunately, there’s no simple answer because it depends on several factors. Still, buying and leasing both have concrete advantages and disadvantages, which we’ll list for you below. After that, if you still need help deciding, make sure to talk to us at Lake Chevrolet and we’ll do our best to help you find the right choice!
When leasing a car, you only pay for its depreciation over the duration of the contract and for interest. That makes it a lot cheaper than buying; in fact, monthly payments could be half as low as when buying the same car. However, leasing a car does mean you’ll probably need a new daily driver after the contract is up, and stringing leases back to back will get expensive.
Buying is the clear winner when it comes to that feeling of ownership. Once the vehicle is paid for, it is totally yours and there are no limitations on what you can do with it. On the other hand, when leasing, you do not own the vehicle and will be required to return it at the end of the contract duration without modifications or excessive wear-and-tear.
Lease contracts come with a mileage limit, often between 12,000 to 16,000 miles a year. If you think you’ll need to drive more than that, you can pay extra for mileage extensions, but that’s obviously not ideal. However, if you don’t think you’ll need the extra mileage, that limitations makes no real difference to your ownership experience. Of course, when buying, you can drive the vehicle as far and as often as you want.
You can always sell a vehicle you own, but the more you use it, the more its value depreciates. For some people, worrying about depreciation is just not worth the hassle. With a lease, you’ll never have to stress over depreciation, but you also won’t have any equity in the vehicle.