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Should I Lease or Buy a Car?

Whether you’re currently shopping for a new car or you will be soon, you need to decide if you should lease it or buy it. What’s going to be most affordable and convenient for you? This is a big decision—one that must take into account various factors, including your financial situation and driving habits.

At Sanger Chevrolet GMC, we want to help you make the right choice so you can feel confident walking away from our lot with the keys to your new vehicle in hand. This blog will provide a comprehensive overview of buying and leasing so you can gain a stronger sense of the pros and cons associated with each.

Here are the pros of buying your next car

If you’ve asked yourself the question, “Should I lease or buy a car?” and you find that you’re tempted by the latter option, then you should consider the following factors.

• Loan payoff: The loan you take out for the car will require paying off the principal amount (the original cost of the car) plus the interest rate over the loan term. Each car payment you make builds equity in the vehicle. This means that you gradually gain a greater ownership stake in the car and owe less money to the lender. Once the loan is paid off, you own the car outright—and that can be such a great feeling!
• Zero mileage restrictions: Let’s say you must embark on a long and unanticipated trip in your vehicle. Or perhaps you’re the type of person who enjoys traveling long distances; road trips and long-distance vacations are important to you. If you buy your vehicle, you’re able to put as many miles on your car as you want. This freedom can not only bring you peace of mind but also cater to your unwavering sense of adventure.
• Customize as you wish: Buying a car is similar to buying a house in that you can customize it as you wish. Want to add some aftermarket accessories to your car, such as ambient lighting or an expensive sound system? Or maybe you want to have your seats reupholstered in colors that match the car’s exterior? These are all choices you can make to personalize your car to match your style and reflect your personality.

Here are the CONS of buying a car:

• Depreciation: Even though some car models hold their value better than others over time, depreciation is a reality for all vehicles. If you’re hoping to pay off your car and then sell it, you need to be aware that the money you put into it won’t necessarily come back to you in full. That’s why it’s important to factor in depreciation when considering the long-term costs of car ownership.
• Long-term commitment: If you’re leaning toward buying a car, you should view it as a long-term commitment. You should like the car you’re investing in because car payments, insurance, maintenance, and fuel costs add up over time, and it’s important to invest in a car that you enjoy driving year-round.
• Higher car payments: Buying a car usually involves higher car payments. Since you’re essentially paying for the car in installments, the monthly payments for buying will typically be higher than lease payments, which only cover the car’s depreciation during the course of the lease term.

Here are the PROS of Leasing a car:

When you lease a car, you agree to use it for a specific period of time. You will make monthly payments, and you’ll be responsible for maintaining the car’s condition across the span of the lease term.

• Lower monthly payments: Your car belongs to the dealership or leasing company, but a major advantage of leasing involves lower monthly payments as compared to financing a purchase. This makes high-end, newer car models more accessible to you, and you can even avoid having to make a sizeable down payment on the car.
• Upgrade your car every few years: Some people find leasing appealing because it allows them to upgrade their vehicle model every few years. Let’s say you’re leasing a Chevrolet Equinox. Once your lease term is up, you can upgrade to the latest Equinox model or explore other models that meet your needs. Upgrading your vehicle allows you to enjoy the latest technology, safety features, and other features that come with newer models.
• Low repair costs: When you lease a vehicle from a dealership or leasing company, it usually comes with a solid warranty that covers the majority of repair costs. The only out-of-pocket expenses you should incur over the lease’s tenure will be routine maintenance such as oil changes, tire rotations, and air filter replacements.

Here are the CONS of Leasing a car:

• Unexpected charges: During the entire course of your lease term, the dealership or lender will expect you to take good care of the vehicle. If the car’s condition at the lease end falls below what’s considered “normal wear and tear” according to the lease agreement, you may be charged for repairs or replacements. This expense can feel like a financial burden.
• Mileage restrictions: Your lease contract will make clear how many miles you can put on your car across the lease term. If you exceed this fixed mileage limit, you need to be prepared to incur per-mile overage fees.
• Early termination fees: If for any reason you return the car early and decide to end the lease before the term has concluded, you may be responsible for termination fees and any remaining lease payments as per the original contract. This is because the lease agreement is a binding contract, and you are essentially paying off the agreed-upon cost of using the car for the entire lease term.

“Leasing” is synonymous with “renting,” whereas “buying” is synonymous with “owning.” As we’ve addressed above, there are many pros and cons to be considered, and we strongly encourage you to weigh your options before making your final decision.

Should I Lease or Buy a Car?—How to Make a Confident Decision

The “Should I lease or buy a car?” question feels, in some ways, like having to choose between a hearty, home-cooked meal and a delicious restaurant dinner. Buying a car resembles a home-cooked meal: it requires upfront investment (grocery shopping) and effort (cooking), but ultimately, it provides a sense of satisfaction and offers the option of customization. Leasing, on the other hand, is a lot like the restaurant experience: it offers immediate gratification (new car with the latest features) and convenience (no maintenance worries), but comes with limitations (fixed menu and a higher cost per serving). Ultimately, the choice you make will largely depend on your personal preferences. You either prioritize long-term value and customization or are drawn to the convenience and novelty of a new experience.

When it comes time for you to answer the question, “Should I lease or buy a car?” you should do the following:

• Evaluate your driving habits: Grab a pencil and a notebook and calculate approximately how many miles you drive per year. If you have a long commute to work, like to travel long distances for vacations, and/or are simply bothered by the idea of having to keep tabs on your miles, buying might be more suitable for you.
• Consider your style: Are you the type of person who always wants the latest features and technologies? Does the idea of owning the same car for five or even ten years or more sound boring or appealing to you? Think about what you want from your car and your driving experience.
• Acknowledge your financial situation: What’s your budget? Calculating how much you can make in monthly payments will go a long way in helping you decide if leasing or buying is more feasible for you.

“Should I lease or buy a car?” is a question that can only be answered by being honest with yourself. Whether you opt for the flexibility of leasing or the long-term commitment of buying, keep in mind that both paths lead to the joy of being behind the wheel of your dream car.

Our team at Sanger Chevrolet GMC invites you to visit our dealership at 1028 Academy Avenue so we can answer any specific questions you have about buying and leasing. We’ve been in business for nearly 40 years, and we’re always happy to help our customers make well-informed decisions so they can feel empowered during their car-buying experience.

Buy or Lease a Car at Sanger Chevrolet GMC

Now that we’ve answered the question, “Should I lease or buy a car?” and you have a clearer perspective of which one might be best for you, visit or call our dealership at 559-875-2578. At Chevrolet GMC of Sanger, we have an incredible inventory of new, used, and certified pre-owned cars, trucks, and SUVs. In addition, we offer competitive financing rates and terms, and our friendly finance experts can guide you through the financing process. You can even fill out a secure finance application online. We look forward to meeting you soon!