Should I Buy or Lease?

2024 RAM 2500 with man relaxing on tailgate near dusk

If it’s time for a new vehicle for your commutes, you may be wondering: Is it better to lease or buy a car? And is it cheaper to lease or buy a car? The answers to both questions can vary depending on your needs, what you can afford, and what you want. While there are benefits to both, the decision between leasing vs. buying a car doesn’t have to be difficult. Get all the details about whether it’s better to lease or buy a luxury car, from mileage restrictions to the tax benefits of leasing a car vs. buying a car, with the finance team at Sam Leman Automotive Group!

Benefits of Buying

  • No Mileage Restrictions: If spend a lot of time on the roadways for work or take frequent road trips, buying might be your best option. Without the mileage limits imposed by leasing, you’re free to drive as much as you want.
  • Total Ownership: When you purchase a vehicle it is completely yours and there are no restrictions on how you modify, decorate, or alter your new vehicle.
  • Ability to Sell: Since you’re not locked into a lease agreement, you can opt to sell your vehicle whenever you choose. The equity you gain through buying a car is one of the best benefits of leasing vs. buying a car.
  • Financing Options: When deciding whether to lease or buy a luxury car, it’s important to know that the car financing process is more straightforward. Buying is also generally more open to those with perfect, or great, credit scores. When buying, you can also refinance your loan to lower your interest rate and monthly payments.
  • Less Cost Over Time: Is it cheaper to lease or buy a car? Buying a new car can be more expensive at the outset, but, it is less troublesome in terms of cost over time. With total ownership, the vehicle becomes less expensive to own the longer you have it.

Benefits of Leasing

  • Lower Payments: The answer to the question, “Is it cheaper to lease or buy a car?” definitely leans more toward leasing. The overall cost for both the down payment and monthly payments is much lower than when buying new. You’ll also save on registration, taxes, and insurance.
  • Less Sales Tax: Leasing a vehicle will drastically lower your sales tax in most states. In some areas, you only have to pay tax on the amount you put forth in the down payment and for the monthly payments, which is another major tax benefit of leasing a car vs. buying a car.
  • Trade-Ins: You don’t have to hassle with trading in or selling your leased vehicle once you’re done with it. When your lease agreement is up, you simply head to your Bloomington, Morton, Peoria dealership, pay any remaining fees, and drive away in your next vehicle of choice.
  • Great Coverage: Warranty coverage and maintenance are a breeze when leasing, as any issue that pops up under your warranty is covered so long as you don’t go over the mileage limit.
  • Options: Leasing a vehicle provides constant access to the latest amenities and technologies to hit the market. If you’re interested in newer features like parking sensors or adaptive cruise control for highway driving, then leasing will be a perfect fit.
  • High Approval Rate: While you may be denied a car loan, it is much easier to get approved for a lease, as even those with poor or no credit can be approved.

Explore Leasing vs. Buying a Car at Sam Leman Automotive Group

Now that you know more about the personal finance and tax benefits of leasing a car vs. buying a car, it’s time to decide: Is it better to lease or buy a new car in your financial situation? Whichever path you decide to take, Sam Leman Automotive Group is here to help. If you have additional questions or need more help deciding whether to lease or buy a luxury car, contact us! We’ll be happy to go over common questions about leasing from a bank vs. leasing from a car dealership and how to finance with no credit history. No matter what your financial situation, the experts at Sam Leman Automotive Group are here to get you behind the wheel of a new vehicle today!

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