No matter if it’s your first car or your third, buying and leasing a car are two options that can still puzzle even the most experienced car buyers. At Patrick BMW, we aim to help you in both your buying and leasing endeavors. In this month’s blog, we outline the major differences between buying and leasing a vehicle so that you are more informed the next time you’re ready to buy.
Leasing
Leasing a vehicle can be compared to renting a car for an extended period. When you lease a car you do not pay the full purchase price, in fact you just pay for the amount of depreciation that is expected to take place during the term of your lease. However, one of the biggest differences between leasing a vehicle and buying one is that leasing a vehicle comes with mileage restrictions. These restrictions limit the amount of miles you can put on the vehicle and, if exceeded, you are responsible for any mileage overage charges unless you choose to purchase the vehicle.
Leasing a vehicle typically comes with lower monthly payments over the course of the lease as well. Specifically, monthly lease payments can be up to 60 percent less than purchase payments per month. At the end of your lease term you can return the vehicle and lease or purchase a new one. However, you do have the option to purchase any car that you lease, as well.
Buying
Buying a car requires you to typically put a cash price or a down payment on various things such as taxes, registration, and other fees. This also means that your monthly payments are typically higher than lease payments, but you also have no restrictions on how many miles you can drive in your new vehicle.
Typically, most people opt to buy a car because the end goal is to own the car itself, and while that can be done while leasing a vehicle, the path is usually simpler when you originally choose to buy a vehicle instead of leasing it.
What to do?
At the end of the day, the choice is yours. Ultimately choosing whether or not to lease or buy a car depends on a variety of personal factors. Leasing allows you to get more car for less money, since you only pay for the value of the vehicle that you drive instead of paying for the entire value. On the other hand, buying gives you the freedom of complete ownership and the ability to pay off the vehicle and build up credit.
No matter your choice, our sales team at Patrick BMW can help you. Feel free to check out our inventory or come see us at 700 E. Golf Road to help make your decision easier.