New Car Lease Vs Buy
Why Lease A New Car?
If you want to drive newer, safer, more reliable cars, prefer not pay a large down payment every 3-4 years, and also do not drive an exorbitant amount of miles annually, then a new car lease could be best for you. Leasing is designed for those who would prefer to avert the annoyance of buying and selling every time they want to drive a new vehicle.
Why Buy A New Car?
Contrarily, if you prefer long term automotive relationships with a larger sense of commitment and ownership, then buying may be what’s best for you. Car-buying is typically best for shoppers who will not mind driving the same car for more than five years or even until it is no longer suited for the highway.
Buy VS Lease: Which Is Right For You?
Knowing the pros, cons, and overall benefits of buying vs leasing a car is imperative. Be sure to contemplate monthly payments, vehicle ownership, repair costs, and potential savings when calculating the best new car or truck financing type for you.
Buying: Ownership VS Leasing
When considering vehicle financing, new car ownership certainly comes along with many advantages, most associated with absolute ownership of the car, truck or SUV. You may not realize, but, there are also a few nice upsides of leasing, as well. It’s important to consider all financial aspects including monthly payments, down payment, term length, buyout payments, interest rate, depreciation, and maintenance & repair costs, before making a decision. A thorough observation of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the optimal choice between leasing and buying a new car, truck, or SUV.
Monthly Payments
Vehicle lease payments are often times less expensive compared to auto loan and car financing payments as the standard lease structure is pretty much renting with the option to purchase at the end of your lease term. Keep in mind when leasing that you’re going to need a nice credit score, and will be required to carry comprehensive and collision insurance, although the same can be said for the lowest rate auto loans. Though it may likely increase your monthly payments, it’s also best to select a model with the features you want or need, as personal satisfaction is often priceless.
Maintenance & Repair
Auto leasing often includes regular vehicle maintenance & repair. It’s important to remember this when calculating monthly costs of leasing vs ownership. Regardless of which make and model you buy, mechanic bills are an unpredictable cost that can rapidly add up. And for those of us who aren’t certified auto mechanics with a hydraulic jack and full toolset in the garage, leasing can be the best option for peace of mind.
Savings VS Investment
Generally speaking, a new car lease saves money in the short term with more affordable monthly payments, while buying gets you a long term investment, meaning outright ownership of the value of the car at the time it is traded, sold, or paid-off. For best savings on a lease, avoid lease return fees for terminating the vehicle lease early, going over mileage, or putting on excessive wear and tear. For maximizing investment on a financed/purchased vehicle, you can pay it off quickly and also avoid excessive wear and mileage.
| Lease | Buy | |
|---|---|---|
| Ownership | No Ownership | Pride of Ownership |
| Down Payment | Smaller Down Payment | Larger Down Payment |
| Monthly Payment | Smaller Monthly Payments | Larger Monthly Payments |
| Maintenance & Repair Costs | Typically Included | Not Included |
| Savings/Investment | Short Term Savings | Long Term Investment |
| Finance Term | Approx. 2-4 Years | Approx. 3-6 Years |
| APR % | Credit-Based | Credit-Based |
| New Vehicles | Available | Available |
| Pre-Owned Vehicles | Not Available | Available |
| Vehicle Customization | Not Available | Available |
| Poor Credit Financing | Not Available | Available |
Mazda Lease And Finance Offers In San Antonio TX
Ingram Park Mazda knows that choosing the right Mazda car and financing option is never easy. Our team of experienced Mazda lease and finance specialist are on hand to help you make the right choice. Visit us online, by phone, or in-person at our dealership location in San Antonio, TX. We look forward to serving you.