Should I lease or should I finance and buy my car?
Leasing vs buying – this is something many car shoppers are unsure about. While leasing provides the benefits of low monthly payments and the opportunity to obtain a new vehicle every couple of years, there are benefits to getting a car loan and buying. Below are a few tips you should consider when making the lease vs buy decision.
Why getting a car loan and buying a car may be best
- Doesn't require significant money down. To keep monthly payments low, many leases require a down payment that is not refundable when you turn in your lease vehicle.
- No mileage restrictions or penalties. Many of the low payment leases have low mileage allowances and you could pay penalties if you drive more miles than allowed. Consider the chances that the number of miles you drive now could change in the future.
- No fees or wear and tear charges. Leases usually have “excess wear and tear” provisions. These could cause you to have unexpected charges at lease termination if there has been any damage to your car.
- Payment-free once loan is paid off. Once you pay off your loan, you can continue to drive your vehicle without a monthly payment. In a lease situation, you will have to turn in your vehicle and likely have another payment to replace it.
Leasing might be attractive to you if you always trade in cars to keep them new and you drive a minimal number of miles annually. Take a look at our lease vs buy calculator to help you decide what’s the best choice for you. If buying is the right choice for you, Apply Here for your car loan.
More Common Car Buying FAQs
- Do I need a down payment or can I get 100% financing to buy a car?
- What things should be considered when buying a NEW car?
- What things should be considered when buying a USED car?
- Can I refinance a car loan I have with another bank?
- Should I lease or finance and buy my car?
- What kind of vehicles will Genisys Credit Union finance?
- Do I need to have great credit to get a car loan?
- Do I need Credit Life and Disability Insurance?
- What other costs should I consider when budgeting for a car?
- What are the insurance requirements for an auto loan?