Lease vs Buy

What Is the Difference Between Buying and Leasing?

The differences between buying and leasing come down to how long you can drive the vehicle.

Leasing has a set endpoint. At the end of a lease, you return the vehicle. Leasing is similar to a long-term rental.

When you purchase a vehicle, there are no limits to how long or far you can drive it. It could be for three years, or it could be 10. It’s entirely up to you!

Benefits of Leasing

Leasing a vehicle offers several distinct advantages. Leasing typically requires a smaller down payment and lower monthly payments. This allows drivers to select a higher trim level with the premium features they’ve always wanted to try.

Leased vehicles have a unique advantage as they’re usually covered by the manufacturer’s warranty. This means potential repairs may be covered, giving you more confidence on the road.

Leasing also allows you to drive a new car more frequently. Lease terms usually range from two to four years, after which individuals can return the vehicle and lease a new model. This appeals to drivers who enjoy the latest features and technologies. Moreover, leasing allows an easy return process. Return it to the dealership at the end of the lease term; no selling or advertising is required.

Benefits of Buying

Buying a car offers its own set of benefits. One of the most notable advantages is ownership. When you buy a vehicle, it is yours, and you have the freedom to modify it, drive it as much as you like, and eventually sell it. This particularly appeals to individuals who prefer a long-term commitment. Owning is also a good option if you drive many miles since you can drive it as much as you like.

Buying a vehicle also means that you may save money long-term. Once you’ve paid off your auto loan, there are no more payments outside of insurance, maintenance, and gas. Owning a car allows you to build equity, as the vehicle retains the value that you can use towards a future purchase or trade-in.