New Car Leasing vs Buying

Monthly Payments

Car lease payments are often times less expensive when compared to auto loan and car financing payments as the typical lease deal is pretty much renting with the option to buy out at the end of your lease term. Keep in mind when leasing that you will need a higher credit score, and will be required to carry collision and comprehensive insurance, though the same can be said for the lower rate auto loans. Although it can likely increase your monthly payments, it is also better to choose a model with the features you want or need, as personal satisfaction is often priceless.

Maintenance & Repair

Auto leases often include regular vehicle maintenance & repair. It’s important to remember this when projecting monthly costs of ownership vs leasing. No matter what make and model you select, mechanic bills are an uncertain cost that can rapidly add up. And for those of us who are not certified auto mechanics with a full toolset and hydraulic jack in the garage, leasing might be the best option for peace of mind.

Savings vs Investment

In general, a new car, truck, or SUV lease saves money in the short term with lower monthly payments, while buying earns you a long term investment, meaning outright ownership of the value of the car at the time it is traded, sold, or paid-off. For best value on a lease, avoid lease return fees for terminating the vehicle lease early, going over mileage, or putting on excessive wear and tear. For your best investment on a purchased/financed vehicle, you can pay it off quickly and also avoid excessive wear and mileage.