Should I Buy or Lease? Your Guide to Auto Financing

August 26th, 2018 by

Key from the car and the calculator on money.

“Should I buy or lease?” It’s the kind of question that probably comes up in your mind a few times when shopping for a car: when you decide it’s time for something new (or used), when you’re picking out which car(s) to test drive, and when you’re trying to budget.
There’s not a right answer — some folks should buy, some should lease — but is here to break down the advantages for our Austin drivers so each of you can make the right choice.

Why Lease a New Car?

You’ll have plenty of options whether you choose to move forward with buying or leasing a vehicle. Some of the benefits of leasing include:

  • Lower Down Payment – A lease will typically require less money up front than financing, making it a more accessible option in many cases.
  • Lower Monthly Payments – While purchase contracts require you to pay for the total value of the vehicle, a lease contract only requires you to pay for the depreciated value, giving you the benefit of lower monthly payments.
  • Warranty Coverage – Lease contract are typically shorter than purchase contracts; most lease agreements are two to three years. This relatively short term means that most issues, should they arrive, will likely be covered by the vehicle’s warranty.
  • More Affordable – Less money and lower monthly payments means that you’ll likely be able to afford to lease a higher-end car than you could purchase.
  • Reduced Taxes – Taxes can add a lot to the cost of car ownership. When you buy, you owe sales tax on the entire cost of the vehicle. But if you lease, you’ll only be on the hook for the amount being financed.
  • Additional Flexibility – When you lease, it’s much easier to upgrade your vehicle frequently without the burden of selling your current car first.

Why Buy a Car?

Those advantages to leasing all sound pretty exciting, but there are plenty of great reasons to finance your next Ft. Worth ride.

  • Ownership – When you finance to own a vehicle, it becomes yours when the contract is over. That means no more monthly payments, just routine maintenance and insurance. It also means that for the duration of ownership, you can make whatever modifications you want.
  • No Mileage Limits – While a lease aims to limit wear and tear on a vehicle, financing to own a car means you can drive it to your heart’s content without penalty — just remember to keep up with the maintenance.
  • Access to Used Cars – If you’re really looking to save, it can be smart to buy a used car, but you won’t find a lease available on most used cars.

Still Not Sure? Let Help

We’re here to help our San Antonio and Dallas drivers with all of their auto needs, and that includes financing questions. If you’re still not sure about the benefits of leasing or owning, we can help–even if you have bad credit! Contact us today.

Posted in Financing, Leasing