So you’ve decided to shop for a new car but you’re not sure whether to lease or buy.  The answer to this may not be simple.  Let’s explore some pros and cons of leasing vs buying.

The decision to lease or buy depends on your individual needs and desires.  For instance, if you’re someone who prefers the latest and greatest new technology than perhaps a lease is better for you.

Furthermore, if you are a business professional who drives with your clients often, leasing may have additional benefits of a tax write-off (see your tax professional for more details.)  Finally there are the financials to consider when deciding between leasing vs buying.  Because typically leasing requires a lower down payment and lower monthly payments, you may be able afford a more luxurious vehicle on your budget.
At the end of the day it boils down to more than just a financial decision.  It can about lifestyle, personal taste, budget or all of the above.

Let’s dive a little deeper into the pros and cons to leasing vs buying.

Advantages of leasing a new car
  • Lower monthly payments and lower down payment.
  • Ability to drive more car to fit your budget.
  • Less repair costs.  In most cases your vehicle is covered under factory warranty during the term of the lease.
  • Pay the sales tax only for the portion of the vehicle during your lease term.
  • You can drive a new car every two, three or four years without the hassle of trading in or selling your current vehicle.

Advantages of buying a new car
  • Once you have paid off your vehicle you will have no further payments and you own your vehicle.
  • Your vehicle will have equity when you’re done paying for it.  Keeping it well maintained will help the overall value of your vehicle in the future.
  • More flexibility in modifying your vehicle to you taste.  It’s your car, accessorize it as you wish.
Final thoughts
In summary, leasing allows you to drive a “nicer” car for less.  You are, in essence, only paying for a portion of the vehicle, rather than buying the entire car and savings on the monthly payment may be substantial.  Leasing works great when you want the newest and greatest technology car makers have to offer without worrying about having to sell or trade in your current vehicle.  However, if you tend to keep your vehicle for five or more years and don’t mind the occasional cost of maintenance then buying the vehicle may be right for you.

Still not sure?
We would be more than happy to discuss your options with you in more detail.  With some simple questions we can help you determine which option is best for you.  Please contact us today at 626.577.0300 or visit our showroom at 130 North Sierra Madre Blvd., Pasadena, CA 91107 today.

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