Lease or Buy? It’s the question vehicle owners ask all the time. Let’s say you’re thinking about an
INFINITI Q50 lease or purchase, which is a better deal for you? It depends on how long you want to keep your vehicle and how long you want to keep your vehicle.
When you buy a vehicle, you either have to pay cash for the whole thing or take out a loan. The loan is based on the total purchase price (minus your trade-in or down payment). When you lease a vehicle, you’re paying for the depreciation that happens during the term. In other words, you’re paying the difference between the car’s price and what it’s expected to be worth at the end of the term (known as residual value). When the lease is over, you just return the vehicle to the dealer. Keep in mind there’s no equity in the vehicle, so when you return it, the money you’ve paid is gone. It’s like leasing an apartment. You get a nice place to live, but when you’re done you’re done. Buying a house is usually more expensive, but when it’s paid off, it’s yours for life.
Here are the Pros and Cons of Leasing vs. Buying.
- You own it. You can do anything you want with it, including modifications or customization
- You can sell it anytime you want.
- Use the vehicle as a trade-in next time you want to buy.
- There’s no mileage cap or extra costs for driving extra miles.
- You’ll save money in the long run
- Your monthly payment will be higher than with a lease
- Once the warranty expires, you’re stuck with 100% of any repair costs
- When you want a new car, you’ve got to sell it or trade it in
- Cars depreciate in value, which means you’ve got cash tied up in your car – and you may end up owing more than the car’s worth.
- You’ll have lower monthly payments and low (or no) down payments.
- You can drive a nicer car than you can afford to buy
- You’ll most likely be covered by warranty for the entire time you’re leasing
- You can turn it back and get a new vehicle every two to three years
- You pay less in sales tax
- When your lease is up, you don’t end the car (unless you want to buy it at that point)
- Mileage is typically limited and driving extra miles costs you more
- If you plan to keep your vehicle for a long time, a lease will cost you more in the long run
- You’ll pay for any damage to the car from an accident
- You might have to pay extra for excessive wear and tear on your vehicle.
- If you need to end your lease early, there are penalties
If you’re thinking about an INFINITI Q50 lease, or buying any new or used vehicle, reach out to the pros at INFINITI Thousand Oaks and let us help put you behind the wheel.