Leasing or Buying?

Almost everyone asks — What is the purpose of leasing a car, when, ownership is so much better? Well…….. Let’s compare

Lease Vs Buy

Buying a Car

  • 60 months of Payments at $300-$500 a month
  • Monthly Maintainence – $200 a month on average
  • (Oil Change, Tires & Incidental Damages)
  • After 70,000 miles – Engine problem fixes, Rotors, Filter expenses
  • Ownership after 60 months

Often times we forget that 90 percent of Americans finance a car. They pay the financed amount over the course of 5 years. Most vehicles after the 5 year period start to show mechanical problems

Total REAL Cost of Buying a $20,000 vehicle over the course of 10 years = $40,000

Leasing a Car

  • Lower monthly payments for 36 months
  • Maintenance packages are included
  • Vehicle mechanical issues are always fixed by lender
  • You reserve the right to return the car OR buy the remaining amount if you love it
  • You must keep the car in good condition

For the same $20,000 vehicle, monthly payments would be around $150 a month. Over the course of 3 years you would only pay $7000 all inclusive. If you were to switch cars every 3 years and get into a new lease, it would still only cost you $25,000 and you would be able to drive a new vehicle every 3 years.

The Bottom Line

The bottom line is that leasing for individuals who the most value out of their car makes sense. What most of us forget is that the maintainence of a vehicle often comes out to a lot of money. IF the dealership pays for this, you are always at an advantage. Sure with leases come limited mileage and forces you to keep your car in good condition, but is that too much to ask if your paying almost half the price and get to change cars every 3 years?