New Car Lease vs Buy

Why Lease a New Car?

If you want to drive newer, safer, more reliable cars or trucks, not make a considerable down payment every 3-4 years, and also do not travel an enormous amount yearly, then a new car lease might be best for you. Leasing is intended for those who prefer to avert the hassle of selling and buying every time they want to upgrade to a new car or truck.

Why Buy a New Car?

On the other hand, if you like long term automotive relationships with a greater sense of commitment and ownership, then buying might be what's best for you. Car-buying is typically best for drivers who do not mind driving the same vehicle for more than five years or even until it's no longer fit for the freeway.

Leasing vs Buying: Which Is Right for You?

Being aware of the pros, cons, and overall benefits of leasing vs buying a car is imperative. Be sure to look at repair costs, vehicle ownership, monthly payments, and potential savings when considering the best new car, truck or SUV financing type for you.

Buying: Ownership vs Leasing

When it comes to vehicle financing, new car, truck, or SUV ownership surely comes with many well-known advantages, most associated with absolute ownership of the car. You may not realize, but, there are also some nice advantages to leasing, as well. It's imperative to consider all financial aspects including monthly payments, down payment, term length, buyout payments, interest rate, depreciation, and maintenance & repair costs, before making a decision. A thorough audit of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the optimal choice between leasing and buying a new car or truck.

leasing vs financing a new car pros and cons

Monthly Payments

Car or truck lease payments are often less expensive when compared to car financing and loan payments as the standard lease structure is pretty much renting with the option to buy out at the final payment of your lease term. Consider when leasing that you are going to need a good credit score, and will be asked to carry collision and comprehensive insurance, although the same can be said for the best rate auto loans. Although it may add to monthly payments, it is also better to select a model with the features you want or need, as personal satisfaction is often priceless.

is it better to lease or finance a car

Maintenance & Repair

Auto leasing often includes 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 buy, mechanic bills are an uncertain cost that can quickly add up. And for those who are not certified auto mechanics with a full toolset and hydraulic jack in the garage, leasing can be the best option for peace of mind.

lease vs buy car analysis

Service & Repair

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

LeaseBuy
OwnershipNo OwnershipPride of Ownership
Down PaymentSmaller Down PaymentLarger Down Payment
Monthly PaymentSmaller Monthly PaymentsLarger Monthly Payments
Maintenance & Repair CostsTypically IncludedNot Included
Savings/InvestmentShort Term SavingsLong Term Investment
Finance TermApprox. 2-4 YearsApprox. 3-6 Years
APR %Credit-BasedCredit-Based
New VehiclesAvailableAvailable
Pre-Owned VehiclesNot AvailableAvailable
Vehicle CustomizationNot AvailableAvailable
Poor Credit FinancingNot AvailableAvailable

BMW Lease and Finance Offers In Santa Fe NM

Santa Fe BMW knows that choosing the right BMW car and financing option is never easy. Our team of experienced BMW lease and finance specialists are on hand to help you make the right choice. Visit us online, by phone, or in-person at our dealership location in Santa Fe, NM. We look forward to serving you.