Lease vs. Buy

Lease versus buy is a question that perpetually comes up. While there are no hard and fast rules for determining whether leasing vs. buying makes sense for you, there are some common sense guidelines that can help you make the decision.

• How long do you want to drive the vehicle? If you like to drive a different vehicle every three years, then leasing makes more sense.
• What can you afford?  If you want to drive a vehicle that is nicer than your budget, then leasing, which typically has lower payments compared to buying, makes more sense.
• How many miles do you drive? If you have to drive substantially more than 12,000 miles a year, then buying vs. leasing can make more sense.
• How much flexibility do you need? If you might need to sell your car in a year, then buying offers more flexibility because you can sell at any time, whereas there can be penalties for ending your lease early.
• Do you like money or convenience? Buying a vehicle and driving it for six years will almost always be cheaper than leasing that same vehicle, new for two consecutive three year terms. However, leasing is more convenient because your lease will typically match the warranty term so you minimize maintenance concerns and you can walk away from the vehicle at the end of the term.
• Do you like math? If you do, then leasing is definitely more fun because it has terms you haven’t heard of like money factor, cap value, residual value, and others that are plugged into a formula to determine your payments.
• Do you like certainty? Buying a vehicle gives you more certainty about costs while a lease can provide surprises at the end because of overage charges and charges for excess wear & tear.

When you buy a new car through CarsDirect, you not only get a great price and superior customer service, but the opportunity for excellent terms on a lease or a loan. A Vehicle Specialist will help you ompare lease and loan promotions available as well as help you understand which will save you money. The service is quick, free of charge, and no obligation. In many cases, we can arrange car financing in a matter of minutes. Start the process of financing through CarsDirect by going to the new car prices channel.