If you want to drive newer, safer, more reliable cars or trucks, not make a big down payment every 3-4 years, and also do not drive an exorbitant amount of miles yearly, then a new car lease might be best for you. Leasing is intended for those who prefer to bypass the hassle of buying and selling each time they want to upgrade to a new car or truck.
Contrarily, if you like long term automotive relationships with a larger sense of commitment and ownership, then buying could be what’s right for you. Car-buying is typically best for consumers who do not mind driving the same car, truck, or SUV for more than five years or even until it is no longer suitable for the road.
Being aware of the pros, cons, and overall benefits of buying vs leasing a car is important. Be sure to look at potential savings, vehicle ownership, monthly payments, and repair costs when considering the best new car financing type for you.
When weighing the value of vehicle financing, new car or truck ownership absolutely comes along with many advantages, most associated with complete ownership of the car, truck or SUV. You may not realize, however, there are also a few great advantages to leasing, as well. It’s imperative to consider all financial aspects including down payment, monthly payments, term length, buyout payments, interest rate, depreciation, and maintenance & repair costs, before making a decision. A careful inspection 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.
Car, truck, or SUV lease payments are often less expensive when compared to auto loan and car financing payments as the normal lease format is basically renting with the option to buy out near the end of your lease term. Keep in mind when leasing that you will need a healthy credit score, and will be required to carry collision and comprehensive insurance, although the same can be said for the lower rate auto loans. Although it could likely increase your monthly payments, it’s also smart to choose a model with the features you need or want, as personal satisfaction is often priceless.
Auto leases often include regular vehicle maintenance & repair. It is important to keep this in mind when projecting monthly costs of leasing vs ownership. No matter what make and model you select, mechanic bills are an uncertain cost that can rapidly add up. And for those who aren’t certified auto mechanics with a full toolset and hydraulic jack in the garage, leasing can be the best option for peace of mind.
Generally speaking, a new car lease saves money in the short term with lower monthly payments, while buying earns you a long term investment, meaning absolute 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 going over mileage, terminating the vehicle lease early, or putting on excessive wear and tear. For maximizing investment on a financed/purchased vehicle, you can pay it off in a shorter term and also avoid excessive wear and mileage.
| Lease | Buy | |
| Maintenance & Repair Costs | Typically Included | Not Included |
| Down Payment | Smaller Down Payment | Larger Down Payment |
| Monthly Payment | Smaller Monthly Payments | Larger Monthly Payments |
| Ownership | No Ownership | Pride of Ownership |
| APR % | Credit-Based | Credit-Based |
| Finance Term | Approx. 2-4 Years | Approx. 3-6 Years |
| Savings/Investment | Short Term Savings | Long Term Investment |
| Vehicle Customization | Not Available | Available |
| Pre-Owned Vehicles | Not Available | Available |
| Poor Credit Financing | Not Available | Available |
| New Vehicles | Available | Available |
Genesis of Southwest Houston knows that choosing the right Genesis car and financing option is never easy. Our team of experienced Genesis 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 Houston, TX. We look forward to serving you.
