Should You Buy or Lease Your New Vehicle? (Infographic)

A car buyer’s budget plays a significant role in buying or leasing a new car. Yes, there is an option to lease a car! This might not sound familiar, but according to MarketWatch, people who choose to lease a car increased to 52% in 2020, way higher than it did in 2019 with 31%.

To lease a car is an option to drive it at an affordable upfront cost than take a car on through a loan that tends to cost more. To avoid confusion of whether to buy new car or to least it, here are the differences of each:

On Payments
Monthly lease payments are often less expensive than car loan payments. The only time that monthly payments for a car loan become less expensive is when a huge down payment is made. With a car lease, upfront sales taxes need not be paid because it is already included in the monthly lease payment.

On Mileage
          If a person happens to decide on buying a car, there will be no stopping the person from driving long distances than when a car is on lease. When a leased car exceeds the mileage limit, it can lead to higher expenses, but cars that are bought don’t have to worry about over-the-limit fees.

Car Customization and Repair Costs
          New car dealerships in San Diego allow car customization according to its buyer’s preference, but this does not happen with leased cars. Also, when it comes to repairing costs, people who buy cars regularly pay for their car’s maintenance from their own pockets. In contrast, people who lease cars can rely on the manufacturer’s warranty cover for repairs during the lease term.

Read more of the differences between leasing and buying a car through this infographic by Carbevy.