Lease vs Buy

Lease vs. Buy Car

When it comes time to get a new ride there is an overwhelming amount of decisions to make, but one of the most important choices you will have to make is if you are going to lease or buy. What makes this decision unique is that there is no right or wrong answer; the decision depends completely on your current situation in life combined with your wants and needs in a vehicle. Below you will find a comparison between the two options, which should provide you with a better understanding of this unique situation. 


Lease

Pros:

  • Only paying for period of time you use the vehicle; essentially renting for an extended period of time
  • Lower monthly payments
  • Smaller down payment required
  • Car is typically covered under warranty for length of lease
  • You can upgrade to a new car every few years (usually 3 years)
  • You are not liable if the vehicle depreciates quicker than expected

Cons:

  • Restricted on number of miles driven each year
  • Additional fees for exceeding mileage limit
  • Title will never be in your name
  • Leases do not help build equity 
  • Additional fees for terminating lease early

Buy

Pros:

  • Once paid off, you will be the owner with the title in your name
  • Since you own the vehicle, you have the freedom to alter or customize it in any way you desire
  • In the long run, buying is more cost effective
  • You can sell the vehicle for a ROI
  • No driving or annual mileage restrictions


Cons:

  • Resale value is unknown until it's time to sell
  • Down payment is significantly higher as you are financing the entire cost
  • Monthly payments will be higher
  • Maintenance and repair costs will be your responsibility once the warranty expires


Only the major differences between leasing and buying a car have been highlighted above and that is simply because there are so many factors that addressing them all would require much more time. The best advice we can provide you on the topic is to apply the points addressed above to your wants and needs; why are you interested in a new vehicle and what do you intend to use it for? 


For more information on the topic or if you have any questions you may contact our finance and lease experts by filling out the contact form on this page, Emailing Us, calling (888) 718-9585, or stop by 870 South Main Street today!

  

Contact

Hatch Motor Company Snowflake

870 South Main Street
Directions Snowflake, AZ 85937

  • Sales: (928) 457-0054

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  • Tuesday 8:00am-6:00pm
  • Wednesday 8:00am-6:00pm
  • Thursday 8:00am-6:00pm
  • Friday 8:00am-6:00pm
  • Saturday 8:00am-5:00pm
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