Buying vs Leasing Blog | Gerry Lane Buick GMC
If you’re in the market for a new Buick or GMC, then you’ll have two options at your disposal: buying and leasing. Both options have their own advantages and drawbacks, so you’ll want to know exactly what you’re getting into before signing on the dotted line.
Upfront Costs
In many cases, leasing makes it easier to get behind the wheel of a new car. For starters, you won’t have to put up as much money up front as you would when buying new. You’ll have a lower down payment plus fewer fees and surcharges to contend with. Certain dealer promotions may even waive the down payment entirely, meaning you can drive away with your new vehicle without paying a single red cent.
Given higher interest rates and a higher down payment, financing a new car will cost you more upfront. Not only that, but you also have to deal with depreciation as soon as you drive your new vehicle off the lot.
Monthly Payments
A typical car lease usually lasts 24 to 36 months, versus an average of 70 months for a car loan. That makes leasing an attractive option if you don’t want to deal with lengthy loan terms while keeping your monthly payments affordable.
Mileage
Another big drawback of leasing a vehicle is the restriction on mileage. With a lease, you can expect a limit on how many miles you can drive throughout the lease period. Most leases limit you to 12,000 to 15,000 miles per year. Go over and you could find yourself paying per-mile overage fees.
If you’re a road warrior who loves long cross-country trips or have a lengthy commute, you’re better off buying your next Buick or GMC vehicle. Owning your car means you can put as many miles on it as you please, although high mileage can have an impact on your vehicle’s resale value.
Ownership
Leasing is the better option if you’re into driving the latest and greatest. At the end of the lease, you can turn in your current ride and lease a more up-to-date version with newer features – or try out something a bit out of the ordinary. Leasing also works if you don’t want to own a vehicle beyond its warranty period, although warranties are getting longer as cars become more and more reliable.
If you look forward to owning your car outright, however, buying is the way to go. You won’t have the same level of “equity” as paying for a new home, but you’ll have something tangible to show for those payments. And if you do eventually decide to buy something else, you can sell or trade-in your current ride as a way to offset the price of your future vehicle.
Customization
If you’re looking to add some sweet mods to your new vehicle, you may want to consider buying instead of leasing. Since you’re turning your vehicle back in at the end of the lease, the dealer wants it to be as close to its original state as possible. You can get away with reversible changes like aftermarket wheels, but customizations that permanently alter your vehicle in any way are usually a no-go.
Buying your new car, on the other hand, gives you more leeway when it comes to modifications and customization. Since you’ll own your car outright at the end, you can make as many changes to it as you like. Just beware that some changes could affect your car’s resale value.
Early Termination
Falling out of love with a vehicle isn’t unusual. The things that wowed you when you first got behind the wheel may drive you nuts after a few months of ownership, for example. When that happens, chances are you want to get rid of your vehicle for something else, but…
When you own your vehicle, you can sell it or trade it in at any time. If there are any payments left on the loan, however, the sale or trade-in price should cover the remaining loan amount. While it’s possible to roll that remaining loan amount into your new loan, you’ll have to deal with higher loan payments.
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