Leasing vs Buying a New Car

Why Lease a New Car?

If you prefer to drive newer, safer, more reliable vehicles, but not pay a large down payment every 3-4 years, and also do not drive an enormous amount yearly, then a new car lease might be best for you. Leasing is better for people who prefer to avoid the hassle of selling and buying each time they want to drive a new car.

Why Buy a New Car?

On the other hand, if you want long term automotive relationships with a larger sense of commitment and ownership, then buying should be what's ideal for you. Car-buying is typically best for consumers who do not mind driving the same vehicle for over five years or even until it is no longer suitable for the road.

Leasing vs Buying: Which One Is Right for You?

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

Buying: Ownership vs Leasing

When weighing the value of vehicle financing, new vehicle ownership absolutely comes with many advantages, most associated with outright ownership of the vehicle. You may not realize, however, there are also some great upsides of leasing, as well. It's important to consider all financial aspects including interest rate, down payment, monthly payments, term length, buyout payments, depreciation, and maintenance & repair costs, before making a decision. A precise study of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the perfect choice between leasing and buying a new car or truck.

pros and cons of leasing vs buying a new car

Monthly Payments

Car lease payments are often less expensive when compared to car financing and loan payments as the standard lease deal is pretty much renting with the option to purchase at the final payment of your lease term. Consider when leasing that you're going to need a good credit score, and will be asked to carry collision and comprehensive insurance, though the same can be said for the lowest rate auto loans. Though it may likely increase your monthly payments, it is also smart to get a model with the features you want or need, as personal satisfaction is often priceless.

is it better to buy or lease a car

Maintenance & Repair

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

lease vs buy car analysis

Peace of Mind

In general, a new car, truck, or SUV lease saves money in the short term with more affordable monthly payments, while buying gets you a long term investment, meaning full ownership of the value of the car, truck, or SUV at the time it is traded, sold, or paid-off. For best value on a lease, avoid lease return fees for going over mileage, terminating the vehicle lease early, 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.

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

BMW Lease and Finance Offers In Albuquerque NM

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